Deputy Minister for Energy, William Owuraku Aidoo has informed parliament that Ghana’s Gold-for-oil contract agreement is between the Bulk Oil Storage and Transportation Company Limited (BOST) and suppliers of petroleum products.
He explained that they are spot contracts that involve the purchase or sale of the commodity for quick delivery at the current or prevailing market price termed as the spot price.
The deputy minister for energy’s explanation follows a question posed to the ministry by the MP for Cape Coast South, George Kweku Ricketts-Hagan
The barter arrangement was first announced by the Vice President, Dr. Alhaji Mahamudu Bawumia, in November last year as part of measures to stabilise the Ghanaian cedi and keep prices of petroleum products low.
Some market watchers, however, cast doubts on the viability and sustainability of the policy.
But the Bank of Ghana has allayed those fears.