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COPEC, IES want BOST margin increased over COVID-19

The Bulk Oil Storage and Trans...

COPEC, IES want BOST margin increased over COVID-19

The group, including the Institute of Energy Security, want funding to BOST increased if the state company can justify its efficiency.

BOST wants the margin to be increased from the current 3 pesewas to 9 pesewas.

The Bulk Oil Storage and Transportation Company BOST, was established to keep strategic reserve stocks for Ghana.

A BOST margin was implemented on the price build up in 2011 to cover the maintenance and expansion of infrastructure at the state company. The 3 pesewa-margin has since remained unchanged despite erosion in value by currency depreciations and inflation.

BOST margin was increased by 100% to 6pesewas in December 2019, but was quickly reversed after stiff opposition led by the Minority. The agitations were largely due to the weak governance structure and corruption that bedeviled the company in the past.

The boss of the Institute for Energy Security (IES), Paa Kwasi Anamua Sakyi said “yes it is true they need increment in their margins to be able to put up storage facilities and also maintain some equipment at their disposure , BOST hasn’t been operating efficiently overtime to import finished products and sell at a profit due to lack of storage facilities, so we’ve lost out woefully from BOST.”

The group, including the Institute of Energy Security, want funding to BOST increased if the state company can justify its efficiency.

BOST wants the margin to be increased from the current 3 pesewas to 9 pesewas.

The Bulk Oil Storage and Transportation Company BOST, was established to keep strategic reserve stocks for Ghana.

A BOST margin was implemented on the price build up in 2011 to cover the maintenance and expansion of infrastructure at the state company. The 3 pesewa-margin has since remained unchanged despite erosion in value by currency depreciations and inflation.

BOST margin was increased by 100% to 6pesewas in December 2019, but was quickly reversed after stiff opposition led by the Minority. The agitations were largely due to the weak governance structure and corruption that bedeviled the company in the past.

The boss of the Institute for Energy Security (IES), Paa Kwasi Anamua Sakyi said “yes it is true they need increment in their margins to be able to put up storage facilities and also maintain some equipment at their disposure , BOST hasn’t been operating efficiently overtime to import finished products and sell at a profit due to lack of storage facilities, so we’ve lost out woefully from BOST.”

But then he went on to suggest that good governance going forward will help them to take advantage to store a lot of products in times like this where boarders are locked. “So if they are willing to give us an assurance to make good use of the money they are requesting for, why not, we will support them to push for it.

On Thursday, 30th April 2020, the Institute of Energy Security, the Africa Centre for Energy Policy, The Chamber of Petroleum Consumers, and the Chamber of Electricity met with BOST management over ways to improve their operations. The Managing Director of BOST, Edwin Provincal said his administration has restored two out of the four barges used to push products to the country’s north, cleared some legacy debt and plans to automate its systems to easily detect fraudulent activities.

The transformation he said has stagnated over funding challenges, hence the plea for an immediate increase in the BOST margin.

Although the energy sector CSOs pledged support for an increase in the BOST margin, they however want management to justify their efficiency.

Management of BOST said once the margin is increased, it will complete the automation within a year. This will help prevent artificial losses and improvements.