Gold4Oil was a scam – Jinapor screams

Headlines Gold4Oil was a scam – Jinapor screams
NOV 30, 2023 LISTEN

Member of Parliament for Yapei-Kusawgu, John Abdulai Jinapor, has described the government’s Gold-for-Oil policy as a scam.

His comments follow the Bank of Ghana’s (BoG) announcement that it will gradually phase out the Gold-for-Oil policy, implemented in February 2023 to stabilize fuel prices.

In a post on X, the MP blasted the Vice President, Dr. Mahamudu Bawumia, for defending the policy when he was cautioned.

“When we cautioned them, Dr. Bawumiah’s response was, “Gold-for-oil' is an initiative the textbooks won't teach you”. G4oil was nothing but a scam! BOG now seeking to end it,” he posted on X.

The Central Bank believes that the program has achieved its purpose and is no longer necessary.

“The Gold for Oil policy was a crisis management policy. We came in at the time in 2022 when the currency was depreciating very sharply and then prices at the pump became unbearable.”

The BoG's decision comes as the Ghanaian economy is beginning to show signs of recovery. The cedi has appreciated against the US dollar, and inflation has begun to moderate.

Meanwhile, the Bulk Oil Storage and Transportation Company Limited (BOST) has denied claims that it has imported manganese-laden fuel under the Gold-for-Oil policy.

Recent reports have suggested that the importation of manganese-laden gasoline into the market is to blame for the underperformance of vehicles.

However, BOST has categorically denied these claims. In a statement issued on Monday, November 27, BOST stated that it has not imported any product under the Gold-for-Oil policy that does not meet the specifications set by the National Petroleum Authority (NPA) and the Ghana Standards Authority (GSA).