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The Bulk Oil Storage and Trans...

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.

donate covid 19

The Bulk Oil Storage and Transportation Company Limited, BOST has donated assorted items to help with the fight to prevent the spread of the COVID-19 pandemic in the country.

Presenting the assorted items to the Office of the First Lady at Ridge in Accra, Mr. Moses Mensah Assem, the Deputy Managing Director of BOST said, the company could not sit idle as Corporate Ghana is doing everything to help government in saving the nation from the dreaded virus. He commended the President for his leadership in the fight and also praised the Office of the First Lady for the positive steps they have taken so far through the Rebecca Foundation towards making life safe and comfortable for the less privileged in such challenging times.

He also capitalized on the opportunity which was witnessed by selected media organizations to advise Ghanaians to observe the social distancing and other preventive measures outlined by government to stop further spread of the virus.
He assured that given the right support, BOST will contribute meaningfully towards the building of the nation as a profitable state owned enterprise.

In receiving the items on behalf of the Rebecca Foundation, the Executive Secretary to the First Lady thanks BOST for the kind gesture and assured the items will be put to good use to help further strengthen the fight towards the prevention of the spread of the virus.

She emphasized the foundation will stop at nothing in its effort to help protect the poor and vulnerable from falling victims to the dreaded virus.

The items included thirty (30) Veronica buckets, thirty (30) cartons of GIHOC Hand Sanitizers, three (3) cartons of liquid soap and twenty packs of hand towels.

The Bulk Oil Storage and Transportation Company Limited, BOST is a state owned Limited Liability Company with the mandate to ensure even supply of petroleum products across the country whilst ensuring the keeping of strategic stocks to keep the economy running in the event of any global supply emergencies.
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ADJEI MARLICK
HEAD, CORPORATE COMMUNICATIONS AND EXTERNAL AFFAIRS

logo displayThe Management of the Bulk Oil Storage and Transportation Company Limited, BOST, announces for the information of the general public that its working hours has been slightly adjusted due to the outbreak of the global pandemic, COVID 19.

The company which opens and closes between 8:00 am and 5:00 pm now opens at 9:00 am and closes at 5:00 pm.
Clients are urged to as much as possible utilize various online portals for their enquiries: email, Facebook, website, phone calls etc. Where there is the urgent need for direct engagements, the start time has been shifted one hour up to 10:00 am.

Management has also given staff the option to take their annual leave within this period to help the employees achieve the needed social distance to reduce the risk of staff getting infested with the virus or spreading same to their colleagues.

For the safety of our clients and employees, hand sanitizers have been provided at all entrances to ensure people walk in with healthy hands to reduce the risk of infection. We urge our clients and employees to make use of these provisions for their own health and safety.

The Management of BOST counts on your cooperation for a smooth sail through the waters of the COVID 19. Together, we shall overcome.
Ghana we serve; BOST we belong.

For further enquiries, log on to our website at www.bost.com.gh.
OR Call direct through:
Front Desk +233 (0)302 770546
Mobile +233 (0)200431578

Thank You. ​

Corporate Communications and External Affairs

The Management of the Bulk Oil Storage and Transportation Company, BOST, is confident its agenda to turn around the fortunes of the loss-making entity is on course following its ability to fully settle a 12-year old credit facility contracted from GCB Bank.

The loan sourced from GCB in 2008 has been in arrears and attracted several penalties from the bank.

But the Chief Executive Officer of the company, Edwin Provencal, has told Citi Business News the GH¢64 million credit facility, which was sourced to boost the trading position of BOST, was completely settled last month.

“In 2017, when we came to power, we engaged GCB Bank, and the good news was that they waived off all penalties and other charges etc, with the promise that they were going to stick to our payment plan. So, that is what we have been doing since 2017, and the good news is that the last bit was cleared last month January, so we have finished clearing GCB debt.”

“We are extremely excited. What this does is that it cleans our balance sheet. It contributes to our balance sheet so we can leverage it to borrow for our operations. We assure that going forward, any other facility we get, we will use a much-disciplined approach to get it,” the BOST CEO stated.

BOST turnaround agenda

The settlement of the GCB Bank loan comes at a time the oil storage and transportation company has embarked on a drive to bring the company back to profitability.

According to Mr. Provencal, it would take an amount of US$150 million to turn around the operations of the company.

Making a case for the amount, Edwin Nii Obadai Provencal, the Managing Director of BOST, said about US$75 million of the funds would be used to upgrade and rehabilitate the company’s infrastructure and the other half would be deployed as working capital.

According to him, the new funding would make the company economically viable and lead to the payment of dividend to government within the next two to three years.

Mr. Provencal explained that the needed funds could come from an increase in the BOST Margin in the petroleum product Price Build-up, government support; or funding from Investors.

He noted that should the option of BOST margin be implemented, it would result in the immediate increase in the prices of fuel, but would in the medium-to-long term, be of great benefit to consumers as BOST’s effectiveness would reduce the price at the pumps.

Mr. Provencal said the capital injection would enable the company to move from its current state of loss-making and low capitalization to a profit-making and dividend-paying company.

Mr. Provencal said the capital injection would also help the management to desist from under-utilizing the company’s assets and use resources fully to operationalize the dormant barges of the company, which transport oil from Akosombo to Buipe and other resources lying idle.

He said the new strategy is focused on improving the operational efficiency of the company by moving from the use of outdated manual systems to a full automation system.

“If the regulator does not regulate well and allows cross zonalisation, then, our dreams may be delayed,” he said, adding that, the vision to transform BOST would not be materialized if we don’t do effective stakeholder management.”

Mr. Provencal said the vision would not come to fruition if there is poor stakeholder management with transporters, tanker drivers’ unions, the regulator, the government, employees of BOST and many other stakeholders.

We have taken notice of a publication with the above caption in the Goldstreet Business newspaper published on Friday, January 10, 2020 and we wish to clarify a few issues therein as follows:

  • In the fourth paragraph on the second page of the paper, the writer alleges that BOST admits to losing $2 Million per month to transmission losses. We wish to state that, fuel distribution/transmission across the country is not done at the cost of BOST and the company cannot be said to be losing anything to transmission. The claim is unfounded and couldn’t have come from BOST.
  • The distribution of petroleum products across the country is a two-stage process: primary and secondary distribution. Both stages are funded fully by specific taxes in the petroleum price build-up which is collected by the Ghana Revenue Authority, GRA, and paid through the National Petroleum Authority, NPA, the regulator of the petroleum downstream. Transport service providers present their bills with supporting documents to BOST and the claims are made on the fund at NPA. The funds received are then paid to the transporters less the value of any shortages recorded in the values they successfully deliver at the various BOST Depots.
  • Primary distribution/transmission is the movement of product from the BOST receiving depot to other BOST depots across the country. This is funded by the Primary Distribution Margin, PDM.
  • Secondary distribution/transmission is when products are loaded from BOST depots and discharged at various Oil Marketing Company, OMC, sales points across the country. This is funded by the Uniform Petroleum Price Fund, UPPF.
  • This means, the petroleum product consumer who pays for products consumed pays for the cost of transmission in the process. BOST does not pay for product transmission across the country.

We would like to assure the general public that all efforts are being made to ensure that petroleum products are made available across the country at reasonable prices at all times.

Meanwhile the threat of product contamination as the paper rightly stated is fully eliminated and in the event it occurs, the company is limited to blending, re-refining or competitive tendering for the disposal of such products. In addition to these, any officials found culpable of any such development as the Managing

Director rightly stated will be surcharged with the full value of the product concerned less any value realized from the listed processes.

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