Institute for Energy Security wants BOST to justify any increase in its margin on petroleum prices

The Institute for Energy Security (IES), has demanded that the Bulk Oil Storage and Transportation Company (BOST) account for its use of the revenue it gains from the margin of petroleum products.

Bulk Oil Storage and Transportation Company

The IES said the BOST margin can only be increased after it justifies the use of its revenue.

This is coming after the National Petroleum Authority (NPA) withdrew a proposed 100% increase in the BOST margin on the prices of petroleum products.

This was done by the NPA through a directive to Oil Marketing Companies (OMCs).

The Chamber of Petroleum Consumers (COPEC) which made this public knowledge said the BOST margin which currently is at 3p/litre or some cumulative 10,200,000.00 from consumers was to be increased by 100% to a new rate of 6p/ litre or some cumulative 20,400,000.00 from consumers.

The Executive Secretary of the COPEC, Duncan Amoah, explained that if the BOST margin is increased it will be a disincentive to consumers who have had to pay for at least 1% upward adjustment in petroleum prices for the first pricing window in December 2019.

In an interview with Accra-based Citi FM, the Executive Director for the IES, Paa Kwesi Anamuah Sakyi said NPA’s decision to withdraw the increase was a smart one.

“It is a smart decision the government has taken to withdraw the margin and we support that,” he said.

He added that BOST would have to justify the use of its previous proceeds for any further increase.

“If we can be assured; and if there is any evidence of prudent management of the use of these resources then anybody would have supported an upward adjustment of the BOST margin. But as it stands now, you cannot see that and you cannot be assured of any better return out of this BOST margin,” he argued.

“So BOST should be able to tell Ghanaians what they have done with what they have at the moment, then we can be sure of what we can do next. For the past three years, BOST has been unable to fully activate their infrastructure, so why build a new one when the one that has been built already is being underutilized?” he asked.

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