The Gold-for-Oil program, initiated by the Bank of Ghana, was designed to alleviate the nation’s dependence on foreign exchange for fuel imports and stabilize escalating domestic fuel prices. The program involved exchanging Ghana’s gold reserves for oil, aiming to reduce pressure on the country’s foreign currency reserves and subsequently control fuel price volatility. However, after a period of implementation, the program faced challenges related to financial losses and operational complexities, leading to its suspension in March 2025.
Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers (COPEC), expressed his support for the Bank of Ghana’s decision to suspend the program. He argued that the initiative was fundamentally flawed and not a viable long-term solution to Ghana’s fuel price challenges. Amoah asserted that the program’s inherent unsustainability made its eventual suspension inevitable. He contended that relying on a commodity exchange program like Gold-for-Oil was not a robust strategy for managing the complex dynamics of fuel pricing.
Amoah criticized the program’s underlying premise, stating that it failed to address the root causes of fuel price fluctuations. He argued that focusing on a short-term fix like bartering gold for oil only diverted attention from the real solution: strengthening Ghana’s domestic refining capacity. He believed that investing in and revamping the nation’s refineries would provide a more sustainable path toward fuel price stability and reduce reliance on volatile international oil markets.
Furthermore, Amoah expressed concern about the potential misuse of Ghana’s gold reserves. He argued that utilizing these reserves for oil procurement was not the most prudent economic strategy. Instead, he proposed that the government should prioritize bolstering the national currency through comprehensive economic reforms and strategic interventions. Strengthening the Ghanaian currency, he posited, would have a more significant and lasting impact on fuel affordability than engaging in ad-hoc commodity exchange programs.
Amoah emphasized the importance of addressing the core issues affecting Ghana’s fuel market. Rather than seeking temporary fixes, he advocated for a comprehensive approach that involves investment in domestic refining capabilities, strengthening the national currency, and implementing sound economic policies. This approach, he argued, would create a more resilient and stable fuel market, less susceptible to external shocks and price volatility. He cautioned against implementing similar short-term schemes that fail to address the underlying structural challenges within the fuel sector.
The suspension of the Gold-for-Oil program underscored the complexities of managing fuel prices in a globalized market. The program, while initially presented as a solution to Ghana’s fuel challenges, ultimately proved unsustainable. The experience highlighted the need for comprehensive and long-term solutions, focusing on domestic capacity building and sound economic management, rather than relying on temporary fixes. Amoah’s critique of the program and his advocacy for a more sustainable approach reflect a broader call for strategic thinking and long-term planning in addressing the challenges of fuel security and price stability in Ghana.
