The New Patriotic Party (NPP) has disputed reports that the first shipment of oil purchased under the “Gold for Oil” initiative was paid for with cash.
Richard Ahiagbah, the NPP's Director of Communications, stated that “no money was paid” and that intermediaries in the deal paid for the oil in cash, while Ghana paid them with gold.
However, Deputy Energy Minister Andrew Egyapa Mercer confirmed that the initial consignment of 40,000 tons of oil was indeed purchased with cash, not gold.
Mr Mercer said, “The policy actually started with an intent to do strict barter for gold and petroleum products, but it became apparent that any of the international oil trading companies that do not have a commodity wing to deal with gold on their behalf will be excluded from the policy.”
He went on to explain that the policy was developed such that there were two streams – direct barter and monetizing the gold – to pay for companies solely focused on petroleum products. The first test run was paid through the second route, according to Mercer.
Despite the initial expectations that the 40,000 metric tons would reduce the pressure on forex and provide cheaper fuel, fuel prices have actually increased twice within the period, which has upset the majority of Ghanaians. The government has stated that the policy will not immediately lead to a reduction in fuel prices until more consignments arrive in Ghana.
Former President John Dramani Mahama has called for the government to send the gold-for-oil agreement to Parliament for scrutiny and approval, as the deal is an international financial transaction. However, the government has stated that there is “no need for government to put before Parliament, the gold for oil agreement for parliamentary scrutiny.”
This news follows calls for the government to provide contract details of the recent fuel consignment brought under the gold-for-oil policy.
