President Nana Addo Dankwa Akufo-Addo has stated that the government’s gold-for-oil policy has started yielding its intended results of reducing fuel prices.
According to him, the price of a litre of diesel has seen a reduction of about ten cedis since the programme commenced.
Akufo-Addo added that the gold-for-oil policy is a creative way of using the country’s resources.
“However, in addition to our engagement with the Fund, we are also seeking and implementing some original and innovative ideas to try to solve our problems. For example, the Gold Purchase Programme by the Bank of Ghana and the Gold for Oil Policy are creative uses of our resources, which are already bearing fruit,” he said during his state of the nation address on March 8, 2023.
The President also noted that the policy will also solve the problem of the cedi’s depreciation.
“These policies are aimed at achieving two results that are critical to the health of our economy. Firstly, they will help us preserve foreign exchange, especially the US dollar, and secondly, they will enable us to stabilise the price of oil products such as petrol and diesel on the domestic market. We have already seen some success on both fronts with the price of US dollars and petroleum products falling since we announced the policy and began to implement it.
“The average price of petrol at the pump, which had risen to twenty (20) cedis a litre, in the middle of December 2022, is now thirteen cedis and eighty pesewas (GH¢13.80) a litre. The price of diesel had risen to more than twenty-three cedis and seventy pesewas (GH¢23.70) a litre and is now selling on the average at thirteen cedis and eighty pesewas (GH¢13.80) a litre, which is a reduction of almost ten cedis a litre. We expect this trend of falling fuel prices to reflect soon in our daily lives, since transport fares affect the price of everything. I hope the trend of prices going up and coming down become a regular feature of our retail economy as is being demonstrated in the fuel prices,” he said.
The State of the Nations Address is in accordance with Article 67 of the 1992 Constitution of Ghana, which states that the President shall deliver a message on the SONA to Parliament at the start of each session and before the dissolution of Parliament.
SONA is a constitutional obligation and yearly tradition where the Commander-In-Chief of the Ghana Armed Forces reports on the status of the country unveils the government’s agenda for the coming year and proposes to Parliament certain legislative measures.
Article 67 of the 1992 Constitution of Ghana obliges Members of Parliament (MPs), the Speaker of Parliament, and the Judiciary to receive the President’s SONA.