Accra: The Executive Director of the Centre for Environmental Management and Sustainable Energy (CEMSE), Benjamin Nsiah, has advocated for the urgent elimination of margins allocated to the Bulk Oil Storage and Transportation Company (BOST) in the petroleum price build-up. This recommendation comes as the government explores strategies to alleviate the financial impact of fuel prices on consumers and businesses.
According to Ghana Web, Nsiah's comments were made in response to a recent Cabinet directive instructing the Ministers of Finance and Energy to temporarily suspend certain taxes and margins for an initial four-week period. This initiative aims to mitigate the financial strain on households and businesses due to rising fuel prices.
Nsiah expressed concerns about the necessity of maintaining BOST margins, asserting that BOST now functions as a fully commercial entity. He explained that BOST generates sufficient revenue through its core services, such as storage, transportation, and terminal operations, which are provided to private sector players in the downstream petroleum industry. He emphasized that the continued inclusion of BOST margins in fuel pricing unnecessarily burdens consumers.
Highlighting the underutilisation of BOST's infrastructure, Nsiah pointed out that several depots across the country remain idle despite having the capacity to operate. He argued that this situation undermines the justification for maintaining margins intended for infrastructure development and maintenance.
Nsiah also scrutinized BOST's operational spending, suggesting that revenues derived from the margin have increasingly served as an internal funding source rather than being allocated towards expanding or enhancing critical petroleum infrastructure. He urged the government to consider cutting or eliminating the BOST margin from the petroleum product pricing structure, noting that BOST already earns service fees from private businesses.
He cited the Bolgatanga depot as an example of underutilized infrastructure, questioning the rationale behind requiring Ghanaian consumers to finance margins purportedly intended for infrastructure upgrades. Nsiah further alleged that the margin has become a source of operational income used for administrative expenses rather than for infrastructure expansion and maintenance.