Pressure is intensifying on government to remove the Bulk Oil Storage and Transportation (BOST) margin from the petroleum price build up, as authorities consider suspending selected taxes and levies ahead of the next pricing window on April 16.
The renewed calls come against the backdrop of rising fuel prices, driven by ongoing tensions in the Middle East that continue to impact global crude oil markets and push up domestic ex pump prices.
The latest voice to join the debate is Appiah Adomako Kusi, West Africa Regional Director of CUTS International, who raised concerns in an interview with Citi Business News.
He argued that taxpayers have funded BOST for years without seeing corresponding infrastructure development, questioning the relevance of the margin.
According to him, BOST should have invested in pipeline infrastructure, such as linking Accra to Kumasi, to reduce transportation costs and improve efficiency in fuel distribution across the country.
He suggested that if the company is unable to fulfil its strategic role, government should consider removing the margin entirely.
Similarly, energy think tank Centre for Environmental Management and Sustainable Energy has called for the immediate removal of the margin allocated to the Bulk Oil Storage and Transportation Company in the petroleum price structure.
The group argued that BOST now operates as a commercial entity and generates sufficient revenue from its core services, including storage, transportation, and terminal operations offered to private sector players.
Executive Director of CEMSE, Benjamin Nsiah, alleged that the margin has increasingly been used to fund administrative expenses rather than infrastructure development and maintenance.
The growing calls follow reports that Cabinet has directed the Ministries of Finance and Energy to implement a temporary suspension of selected taxes and margins for an initial four week period to ease the burden of high fuel prices on households and businesses.
However, Institute for Energy Security has cautioned against scrapping the BOST margin, warning that such a move could weaken fuel supply security and limit investment in critical infrastructure within the downstream petroleum sector.