IES Warns Against Scrapping BOST Margin, Cites Risk to Fuel Supply Stability

The Institute for Energy Security (IES) has cautioned against proposals to abolish the Bulk Oil Storage and Transportation (BOST) margin, warning that such a move could threaten the stability of Ghana’s fuel supply system. According to the think tank, the margin is not a typical levy but a critical funding mechanism that supports the development, maintenance, and expansion of the country’s petroleum infrastructure.

In a statement issued on April 12, 2026, the IES explained that the BOST margin plays an essential role in sustaining the operations of BOST Energies, particularly as fuel demand continues to rise due to population growth and expanding economic activity. The group noted that Ghana’s energy infrastructure depends heavily on consistent financing to remain reliable and efficient.

Established in 1993, the Bulk Oil Storage and Transportation Company (BOST) is responsible for maintaining Ghana’s strategic petroleum reserves and ensuring the safe transportation of fuel across the country. Its infrastructure includes six major depots, located in areas such as Accra Plains, Kumasi, and Buipe, as well as a pipeline network stretching over 349 kilometres.

While acknowledging public concerns over fuel prices, the IES urged government to consider alternative relief measures that would not weaken critical infrastructure funding. It proposed options such as the suspension of the Price Stabilisation and Recovery Levy (PSRL), allowing flexibility in petrol and diesel pricing, and reducing the “Dumsor” levy, citing improved fuel supply from the Tema Oil Refinery. The IES concluded that the BOST margin should be retained and protected to safeguard Ghana’s long-term fuel supply security.