Ghana Chamber of Bulk Oil Distributors, Dr. Patrick Kwaku Ofori, says the government’s gold for oil policy has cornered bulk oil distributors working in the country.
According to him, none of them had anticipated such a policy as it places them in a tight spot in competition against the government.
The government’s gold for oil policy as a government strategy was borne out of the country becoming strapped of foreign exchange.
The policy is to enable the government directly exchange gold for oil while avoiding to use foreign currency, particularly the dollar, as a means to control the country’s inflation.
Speaking on the policy and its impact on the oil distribution industry in the country, Dr. Ofori noted that the policy will have a toll on the regulators’ revenue generation, “because none of the BDCs or those BDCs who have paid their license fee did not necessarily pay for a license fee to be cornered a percentage of the matter.”
He said on PM Express Business Edition that “They want to be given the right climate to conduct their business. And also don’t forget these private entities also employ Ghanaians and they also pay their taxes.
“So it’s a bit of a tricky situation there, and the programme obviously impacted on private sector participation judging from how private sector can also assess the proceeds of the revenue coming from the gold purchases.”
He however suggested that government could change their policy to allow private sector engagement.
“But if government intends to change their policy with regards to the gold for oil and allow private sector participation and say that ‘well as a country, all our revenue that we’re going to generate from maybe gold export, we’re going to use maybe a percentage of it to finance our refined product importation .
“And by so doing, either through the Central Bank reactivating the forex option so that both the private sector and the public entities who are interested in importing refined products can go through those competitive processes to be able to have the product.’”
He also stated that another option was for the Bank of Ghana to surrender all gold proceeds and revenue in a way to guarantee forex availability to the commercial banks for all importers to have access to them.
Latest Stories
-
May 9 disaster commemoration is GFA’s biggest tribute to those who died – Kurt Okraku
3 mins -
Societe Generale Ghana records impressive 290% growth in 2023
18 mins -
Ghana Boxing Authority vice president resigns with immediate effect
21 mins -
One person arrested for attempted double registration in New Juaben South
23 mins -
New fee structure introduced for pension service providers
32 mins -
My presidency will benefit all, says Bawumia
40 mins -
Eva Andoh-Poku appointed acting Administrator for GIFEC
43 mins -
Over 20 public schools in Volta Region suffer roof damage from rainstorm
46 mins -
Government embarks on sustainable transformation of its built environment
47 mins -
Newborn baby abandoned at church gate
51 mins -
Ghana Bar Association supports Mepe students
52 mins -
Akufo-Addo touts Ghana’s oldest Anglican cathedral, advocates protection of the relics
53 mins -
University of Ghana launches Legon Leadership Academy initiative
54 mins -
Cedi to stabilise against dollar, other foreign currencies – Governor assures
58 mins -
Domelevo condemns Sam Okudzeto’s approval of home cash stashing
1 hour