The CEO of the Chamber of Bulk Oil Distributors says it is unfair to expect all Bulk Distribution Companies (BCDs) to purchase products from the Bulk Oil Storage and Transportation Company Limited (BOST) as a result of the Gold For Oil deal.

According to Dr Patrick Ofori, many BDCs have established structures based on their partnerships with international oil distributors and banks, facilitating their business operations.

Speaking on PM Express on JoyNews, he said, “Members (BDCs) have set up their businesses and their business structure does not allow it...they don't deal with BOST.

"If I have a partnership with Vitol, Glencore or others, you're saying that I compulsively cancel those long-standing contracts and go and buy from BOST? Is that a good business practice for relationships that you've built over the years?”

As such, BDCs are unable to benefit as much from the Gold For Oil deal stating that it does not cover all of the private sector which does not have an equal stake at the decision-making table, Dr Ofori said.

Additionally, he stated that BOST is only able to supply 40% of the market demand for petroleum products making it impossible for every distribution company to buy from them.

“If the whole BOST system supplies 40% of the market and we are all buying from BOST, fair enough. The remaining 60%, how do they finance that? How do they supply the market? You want to create queues in the market?”

“Or you want people who have built relationships with their partners, international partners and banks that have created lines and loans and opportunities for them to conduct their business to collapse?”

Dr Ofori said the BDCs' bone of contention has been that although they understand the strategic role BOST plays, “none of us set up our business with BOST as a middleman. We all set up our businesses because we built a track record of having a wonderful relationship with these international players.”

He said for all the years that BOST was not able to pay its debt, the private sector kept the market going.

Dr Ofori believes that the Gold for Oil policy should be extended to cover everyone beyond the 40%.

Following a constant depreciation of the Ghana Cedi in the last quarter of 2022, the government introduced the Gold for Oil Programme.

The Gold for Oil policy is an innovative measure to exchange gold for petroleum products. 

The government has maintained that the decision was meant to limit demand for dollars for the importation of petroleum products to slow the currency’s devaluation.