ACEP raises concerns over BOST’s commercial shift, calls for privatization 

The African Centre for Energy Policy (ACEP) has expressed concern over the Bulk Oil Storage Company’s (BOST) shift in mandate and its call for privatization. 

ACEP noted that BOST, originally tasked with maintaining strategic petroleum reserves, had increasingly moved toward commercial operations, now competing with private sector companies. 

The Centre raised issued about the company’s continued receipt of GH¢600 million annually from margins while operating tax-free, in contrast to the taxed private sector businesses it competes with. 

This shift follows calls from the energy think tank for the privatization of BOST and its listing on the Ghana Stock Exchange to promote transparency and efficiency. 

ACEP pointed out that BOST’s control of 20 percent of the import market further underscored the company’s shift toward commercial operations rather than focusing on strategic petroleum reserves. 

It proposed an alternative strategy for securing strategic stockpiles, recommending regulations that would require Bulk Oil Distribution Companies to maintain minimum stock levels, thus spreading the responsibility. 

ACEP also suggested providing incentives to International Oil Traders (ITO) to store products in Ghana, thereby creating a significant buffer for national supply security. 

The think tank said that the changing refinery landscape raised questions about the necessity of BOST’s current model and its associated margins, especially as the private sector could potentially deliver similar services at lower costs. 

ACEP called for a comprehensive review of BOST’s operations to ensure a more efficient and effective approach to maintaining national energy security. 

Source: GNA 

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