In a bid to address energy security and economic stability, the concept of trading gold for oil has garnered significant attention as a potential remedy for high fuel prices.

Ghana’s Gold for Oil (G4O) policy, launched in 2022, was designed to reduce fuel costs by exchanging gold for imported petroleum, thereby easing foreign exchange demand.

Although the policy aims to stabilize fuel prices, alleviate forex pressures, and bolster the local economy, a closer examination of Ghana’s economic landscape indicates that gold-for-oil transactions alone may fall short of delivering the anticipated relief.

Without addressing the underlying inefficiencies in the downstream petroleum sector, the initiative risks misallocating critical resources.