Mr Ken Ofori-Atta, the Finance Minister, says the Government’s Gold for Oil (G40) Programme has significantly contributed to the stabilisation of the Cedi to the dollar.
The Minister said the Programme contributed to a reduction of the Cedi from GH¢17 in November 2022 to GH¢12 in November 2023 to the dollar.
Delivering the 2024 Budget at Parliament House on Wednesday, Mr Ofori-Atta said the Programme also accounted for a reduction in the ex-pump price of diesel from GH¢23 per litre to GH¢12 per litre.
The Government announced the G4O Programme in November last year as an innovative measure to exchange gold for petroleum products instead of US Dollars.
The Government said the move was intended to reduce the demand for dollars for the importation of petroleum products and by extension reduce the rate of depreciation of the Cedi.
It is estimated that the country requires about $400m to import petroleum products monthly – out of which the Bank of Ghana is able to supply only $120m to petroleum importers.
The Government has targeted that the G40 Programme would account for 50 per cent of petroleum products imported into the country.
Mr Ofori-Atta said since the commencement of the G4O Programme, the Bank of Ghana purchased a total amount of 17.89 tons (US$1,140m) of gold to boost its gold reserves.
“In addition, under the G4O programme, 23 cargoes (circa 800,000 metric tonnes) of Gasoline and Gasoil, equivalent to 30 per cent of national consumption, have so far been imported,” the Minister added.
Oil marketing companies (OMCs) which purchased petroleum products under the Government’s G4O Programme were required to sign an undertaking to guarantee a reduction in their prices at the pumps.
The move, according to the National Petroleum Authority (NPA) was intended to ensure that consumers benefited from the Programme.
Per NPA’s arrangements, only OMCs with at least 45 outlets across the country are eligible to lift consignment under the G40 Programme.
GNA