The Bank of Ghana (BoG) has revealed it incurred a total loss of GHS¢2.14 billion under the now-defunct Gold for Oil (G4O) programme, which aimed to stabilise domestic fuel prices and reduce pressure on foreign exchange reserves.
This disclosure was contained in an official response to a Right to Information (RTI) request submitted by energy analyst and New Patriotic Party (NPP) member, Kwadwo Poku. The request was made under Article 21(1)(f) of the 1992 Constitution and Section 18 of the RTI Act, 2019 (Act 989). BoG’s detailed response, dated July 2025, covered financial operations related to the G4O programme over the 2023 and 2024 fiscal years.
Breakdown of Losses
The central bank confirmed a loss of GHS¢320 million in 2023 and GHS¢1.82 billion in 2024. These losses were largely attributed to two factors:
- Gold Transactions: Losses in this category amounted to approximately GHS¢1.8 billion, driven by exchange rate mismatches between the local gold market rates and BoG’s internal conversion rates.
- Petroleum Trading: An additional GHS¢340 million loss was incurred from large fuel stockpiles purchased before a major drop in global oil prices. Initial Gains Cited by the Bank
Despite the overall financial shortfall, BoG defended the G4O programme’s initial impact, particularly in its first year. According to the Bank, the initiative significantly reduced the demand for US dollars from Bulk Oil Distributors (BDCs), thereby easing volatility in the interbank forex market.
It estimated that the G4O arrangement prevented around $1.66 billion in potential forex outflows, enough to finance 56 petroleum cargoes — totaling over 1.84 million metric tonnes — delivered by the end of 2024.
The programme also fostered competition in the fuel import market. Before G4O, import premiums stood at $150–$170 per metric tonne. These dropped to between $50–$80 under the scheme, leading to relatively lower ex-pump fuel prices. The elimination of forward forex pricing under G4O further contributed to short-term price stability at fuel stations.
Exit in Line with IMF Guidance
The Bank announced its formal withdrawal from the programme, describing it as a temporary measure implemented to cushion the economy from high global oil prices. The phase-out, it noted, aligns with recommendations from the International Monetary Fund (IMF) under Ghana’s ongoing economic recovery programme.
Looking ahead, the BoG said it will focus more on its Domestic Gold Purchase Programme (DGPP) as a sustainable approach to bolstering Ghana’s foreign reserves.
The Bank also disclosed that a new operational framework is being developed to shorten the cash flow cycle in petroleum trade. As part of this transition, the responsibility for fuel trading and financing will be shifted to the Bulk Oil Storage and Transportation (BOST) company and its financial partners.
