Ghana: Energy Minister lauds BOST for contributing to economic stability

The Minister of Energy, Dr. Mathew Opoku Prempeh, has highlighted the crucial role played by the Bulk Oil Storage and Transportation Company (BOST) in promoting economic stability in recent years.

Speaking at an event to commemorate the 30th anniversary of BOST in Accra, Dr. Opoku Prempeh highlighted the state-owned firm’s contributions to economic stability, particularly under the government’s flagship Gold-for-Oil (G40) policy. The G40 initiative allows BOST to pay for imported oil products with gold, in a direct barter with gold purchased by the central bank, according government.

As part of the program, the government explained that payment for the oil occurs through two channels: barter trade or using foreign exchange acquired from selling gold to a broker.

Through the barter channel, suppliers willing to accept gold in direct exchange for petroleum products will receive the equivalent volume of gold from the Bank of Ghana (BoG).

Meanwhile, within the broker channel, the Bank of Ghana (BoG) enters into a gold supply agreement, selling gold to a gold broker. The broker, in turn, provides forex cover to facilitate the payment for petroleum products.

“By eliminating a significant portion of the monthly demand for dollars in our domestic economy, we have successfully stabilized the foreign exchange and petroleum products prices in,” the energy minister said,

He credited the stability in the forex market to the central role BOST plays in storing, transporting and distributing imported petroleum products in the country.

Dr. Opoku Prempeh, who was speaking at a “Thanksgiving Service” to mark the 30th anniversary of BOST, reckoned that the policy intervention has been a huge success. “This achievement has ensured that our economy remains resilient and robust by permitting reliance on the Ghana cedis in the importation of petroleum products to meet national demand,” he said.

The sector minister hailed BOST as a shining example of excellence in managing public enterprises. With the company returning to profit in the last two fiscal years after over a decade of losses, Dr. Opoku Prempeh credited this success to visionary leadership, strategic planning, and dedicated teamwork.