The Africa Centre for Energy Policy (ACEP) has called on the government to commercialize the Bulk Oil Storage and Transportation Company (BOST) and list it on the Ghana Stock Exchange. This, ACEP believes, will promote greater transparency, accountability, and efficiency in the company’s operations.
According to the think tank, BOST collects a margin of 12 Ghana pesewas per litre of petroleum to fund its operations and maintain strategic petroleum reserves. However, ACEP asserts that the company has failed to fulfill this mandate effectively.
Rather than focusing on its core responsibility of maintaining strategic reserves, BOST has reportedly shifted its operations and now controls about 20% of Ghana’s petroleum import market through the Gold for Oil program.
Additionally, the company receives approximately GH₵600 million annually from petroleum product margins. Despite this significant revenue, ACEP notes that BOST competes with private entities that are subject to taxation, raising questions about fairness and market dynamics.
Speaking at a media briefing on January 15 under the theme “Downstream Petroleum Products Taxation: A Call to Action,” Kodzo Yaotse, ACEP’s Policy Lead for Petroleum and Conventional Energy, emphasized the need for a reevaluation of BOST’s role.
“The current market realities indicate that BOST, in its current form, is no longer essential. If it is to continue operations, commercialization and listing on the stock exchange are necessary steps,” Yaotse argued.
He further noted that such a move could lead to better governance, improve operational efficiency, and potentially eliminate the 12-pesewa margin currently added to petroleum prices, reducing costs for consumers.
ACEP’s call adds to growing demands for reforms in Ghana’s downstream petroleum sector to enhance competitiveness and ensure fair practices across the industry.
SOURCE: http://dew360.net
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