Civil society group Energy Consumer Watch Ghana fears consumers will be put at greater risk if the levies on the Bulk Oil Storage and Transportation (BOST) are scrapped as part of measures to cushion Ghanaians over rising fuel costs.
“Removing this crucial funding could compromise Ghana’s fuel storage and distribution infrastructure,” the group said in a statement on Monday, April 13.
Signed by the Head of Development and Consumer Unit, Dr Kwasi Mensah Sey, the statement noted how understandable the desire for immediate relief for Ghanaian consumers is in the face of the Israel-Iran tensions.
“However, scrapping the BOST margin puts consumers at greater risk,” the statement noted.
It later noted: “Since its inception, BOST has been a strategic partner in the downstream petroleum sector, ensuring stability and security in fuel supply.
“The middle and northern belts, already vulnerable to price fluctuations, will be hardest hit by price instability if the margin is scrapped.”
It noted that BOST’s planned expansion projects are dependent on its margin for funding.
“Scrapping the margin would jeopardize these critical projects and exacerbate existing supply chain challenges.”
Energy Consumer Watch rather suggested that the margin is optimised to support growing fuel demand.
“Instead of scrapping the levy, let’s ensure it’s used efficiently and effectively.”
It urged government to acquire new river barges to cart fuel from Akosombo to Buipe, expand the Tema-to-Akosombo pipeline and venture into rail fuel transmission in order to diversify transportation modes and enhance supply security.