The Institute for Energy Security (IES) has issued a strong caution against any attempt to remove the Bulk Oil Storage and Transportation (BOST) margin, warning that such a move could significantly undermine Ghana’s fuel supply security and stall critical infrastructure development.
In a press statement released on April 12, 2026, the energy policy think tank described the BOST margin as a vital financing mechanism that supports the development, maintenance, and expansion of petroleum storage and distribution infrastructure across the country.
According to IES, scrapping the margin under current market conditions would weaken the operational capacity of Bulk Oil Storage and Transportation Company (BOST), thereby compromising the reliability of fuel supply nationwide.
The Institute highlighted that Ghana’s fuel consumption has grown significantly over the past two decades, driven by economic expansion, rapid urbanisation, and increased transportation demand. However, infrastructure development—particularly in the middle and northern parts of the country—has lagged behind, creating persistent supply vulnerabilities and higher distribution costs in those regions.
IES further emphasized BOST’s strategic role in maintaining national fuel reserves, enhancing bulk storage capacity, and ensuring supply stability across the country. It warned that removing the margin at this critical time would stall ongoing and planned infrastructure projects, reduce investment in storage and logistics, and increase supply risks, especially in underserved areas.
While acknowledging growing public concerns over fuel prices and the need for short-term consumer relief, the Institute cautioned that dismantling structural financing tools like the BOST margin could create long-term systemic risks that far outweigh any immediate benefits.
Instead, IES urged the government to consider alternative measures that would provide relief to consumers without jeopardising critical infrastructure funding. These include the temporary suspension of the Price Stabilisation and Recovery Levy (PSRL), allowing cross-pricing flexibility between petroleum products, and marginal reductions in the so-called “Dumsor Levy,” citing improved fuel sourcing from the Tema Oil Refinery (TOR).
The statement concluded with a firm recommendation that the BOST margin be retained and protected as a strategic industry mechanism essential to safeguarding Ghana’s long-term energy security.
Story By: Eric Boateng
