Dr. Edwin Alfred Provencal is former MD of BOST
A former Managing Director of Bulk Energy Storage and Transportation Limited (BOST), Dr. Edwin Alfred Nii Obodai Provencal, has strongly refuted claims by Dr. Riverson Oppong, CEO of the Chamber of Oil Marketing Companies (COMAC), that the Gold-for-Oil (G4O) program has failed to stabilize fuel prices and contributed to fuel shortages in Ghana.
In a rejoinder responding to Dr. Oppong’s remarks on Joy News’ PM Express on February 4, 2025, Dr. Provencal described his analysis as “simplistic and misleading”, arguing that the Gold-for-Oil policy has significantly benefited Ghana’s economy by stabilizing the forex rate and fuel prices.
According to Dr. Provencal, the Gold-for-Oil initiative was designed as a temporary measure to ease pressure on Ghana’s foreign exchange market by reducing the demand for dollars in petroleum imports.
He cited several economic improvements attributed to the policy, including, a drop in petroleum product premiums from $135 per metric ton to $65 per metric ton; a reduction in diesel prices from GHS 23 per litre in November 2022 to GHS 15.45; and significant decline in inflation, from 54% in November 2022 to 23.5% in January 2025.
“These achievements would not have been possible without the G4O intervention. The situation would have been dire if we had not taken steps to control the demand for forex,” he emphasised.
Dr. Provencal also dismissed the claim of the program resulting in recent fuel price hikes, attributing them to speculative activities and uncertainties following the 2024 elections, rather than any shortcomings of the Gold-for-Oil program.
Addressing Dr. Oppong’s claim that Gold-for-Oil caused fuel shortages towards the end of 2024, Dr. Provencal described it as a “blatant untruth”.
He clarified that there was never a nationwide fuel shortage, but rather a temporary distribution challenge in some regions.
He pointed out that his assertions, were verified by the National Petroleum Authority (NPA) at a meeting chaired by John Jinapor, Minister of Energy, on January 12, 2025.
Additionally, the former BOST MD mentioned that the Bulk Distribution Companies (BDCs), responsible for importing petroleum products, had supply arrangements independent of the Gold-for-Oil program. Therefore, any disruptions in supply were not the fault of the policy, especially since G4O accounted for only 30% of Ghana’s total petroleum consumption.
Dr. Provencal in his rejoinder also rejected allegations that the program lacked transparency, emphasising that multiple government institutions were involved in its implementation, including, Cabinet; Economic Management Team; Ministries of Finance, Energy, and Lands & Natural Resources; Bank of Ghana; Precious Minerals Marketing Company; National Petroleum Authority; Bulk Distribution Companies; GOIL and BOST.
Dr. Provencal therefore encouraged anyone with doubts to use Ghana’s Right to Information (RTI) law to verify details from these institutions.
He highlighted the broader economic benefits of the G4O program, stating that it has ensured petroleum security for the country, lowered pump prices for consumers, reduced forex losses for Bulk Distribution Companies (BDCs) and guaranteed business for private fuel terminal operators and transport owners.
He noted that other African countries have since approached Ghana for support in replicating the initiative.
Dr. Provencal concluded by affirming that the Gold-for-Oil program has been a game-changer for Ghana’s economy, stabilizing forex rates and protecting the country from petroleum-driven inflation.
He however acknowledged that just like any policy, the Gold-for-Oil program could be further improved, but insisted that its core objectives have been met.
“Gold for Oil has served Ghana faithfully. It can be enhanced to extract more value for the good people of Ghana,” he asserted.
MA