The Institute for Energy Security (IES) has cautioned the government against any attempt to remove the Bulk Oil Storage and Transportation (BOST) margin, warning that such a move could undermine Ghana’s fuel supply security and stall critical infrastructure development.
In a statement issued on Sunday, the institute described the BOST margin as a “strategic financing mechanism” essential for supporting the development, maintenance, and expansion of petroleum storage and distribution infrastructure across the country.
According to IES, removing the margin under current market conditions would weaken the operational capacity of Bulk Oil Storage and Transportation Company Limited (BOST) and compromise the reliability of fuel supply nationwide.
The institute noted that Ghana’s fuel consumption has risen significantly over the past two decades, driven by economic growth, urbanization, and increasing transport demand. However, it said infrastructure expansion—particularly in the middle and northern parts of the country—has lagged behind demand, leaving those regions vulnerable to supply disruptions and higher distribution costs.
IES emphasized that BOST plays a critical role in maintaining strategic fuel reserves, supporting bulk storage capacity, and ensuring supply stability across the country.
It warned that eliminating the BOST margin at this time would likely stall ongoing and planned infrastructure projects, reduce investment in storage and logistics, and increase supply risks, especially in underserved areas.
While acknowledging the need for short-term measures to ease the burden on consumers, the institute cautioned against dismantling key financing tools, arguing that the long-term risks would outweigh any immediate benefits.
Instead, IES urged the government to retain and protect the BOST margin while exploring alternative relief options. These include temporarily suspending the Price Stabilisation and Recovery Levy (PSRL), allowing cross-pricing flexibility between petroleum products, and reducing the so-called “Dumsor Levy,” citing improved fuel sourcing from the Tema Oil Refinery (TOR).
The statement was signed by the Institute for Energy Security.
