Accra: The Bulk Oil Storage and Transportation company, now known as BOST Energies, was primarily established to manage strategic petroleum stocks for the country. This mandate requires the state-owned energy company to maintain petroleum reserves that could sustain the nation during periods of energy distress caused by factors such as geopolitical tensions, pandemics, natural disasters, oil price fluctuations, and disruptions in the energy supply chain.
According to Ghana Web, a Strategic Petroleum Fund provides a buffer against these occurrences, which are beyond the country's control. The proposed levy will offer the necessary infrastructure to support the purchase and storage of petroleum products for unforeseen circumstances. A collaboration between the rejuvenated Tema Oil Refinery (TOR) and BOST Energies could further enhance downstream institutional cooperation. This partnership would ensure a portion of the petroleum stocks levy is allocated for purchasing crude oil to be refined by TOR and stored for BOST Energies, augmenting existing storage and distribution arrangements.
Countries worldwide maintain strategic petroleum reserves to shield their economies from shocks. For instance, the U.S. Department of Energy has a strategic petroleum reserve capacity of about 714 million barrels, with an inventory of 395 million barrels. This reserve could sustain the country's petroleum needs for 90 days during emergencies and is managed through the Office of Petroleum Reserves. China, the leading importer of petroleum products, has heavily invested in strategic petroleum stocks to prepare for supply disruptions. The U.S. Energy Information Administration estimates China's combined strategic oil reserves at 1.4 billion barrels, capable of sustaining their demands for 4-6 months in the event of supply disruptions.
According to Eurostat, Germany had an estimated strategic stock reserve of 170 million barrels as of December 2025, managed by the Petroleum Stockpiling Association. This reserve meets the requirements of the International Energy Agency (IEA) and supports a 90-day buffer. Germany is also transitioning towards energy sustainability with increased electric vehicle usage and solar panel installations, preparing for potential petroleum supply disruptions.
In contrast, South Africa's situation deviates from the internationally accepted 60-90 day petroleum buffer. The Central Energy Fund manages the reserves on behalf of the government, holding 7.7 million barrels of crude oil by the end of 2025, which can sustain the country's petroleum needs for only two weeks after a major disruption. Despite its oil wealth, Nigeria frequently faces fuel shortages and long queues for petroleum products. The country aims to collaborate with private refineries like Dangote's to ensure product availability, with a petroleum reserve that sustains fuel demands for 30 days in case of disruptions.
Ghana's situation mirrors that of South Africa and Nigeria, lacking strategic petroleum stocks for sudden shortages or supply disruptions. The country relied on a dedicated fund for replenishing strategic stocks until it was removed in 2006, now depending solely on operational stocks without a strategic reserve buffer.
There is an urgent need to reintroduce the strategic stocks levy to sustain the downstream petroleum industry and the entire energy environment. This levy would protect the country against external shocks, providing resources to establish storage facilities, transportation infrastructure, and monitoring mechanisms for adequate supply. It would also help maintain petroleum prices within a specified range during international market surges, cushioning consumers against unexpected price hikes.
Aligning Ghana with the International Energy Agency's (IEA) benchmark, though not a member, would guide energy security and attract investment. A 90-day strategic reserve could significantly contribute to the country's energy needs and overall economic benefit.
In conclusion, countries investing in strategic reserves do so through national funds, specific budgetary allocations, or a levy on petroleum products. These funding sources offer the liquidity needed to purchase, store, and supply petroleum during disruptions. Ghana should reintroduce the strategic stock levy to ensure long-term energy security and stability amid geopolitical tensions that could create future market uncertainties. The medium to long-term benefits of a strategic stock levy outweigh the immediate commitment required.