BOST’s 20% Petroleum Import Market Share Prompts Calls for Commercialization and Stock Exchange Listing
The Africa Centre for Energy Policy (ACEP) is advocating for the commercialization and stock exchange listing of the Bulk Oil Storage and Transportation Company (BOST), a state-owned enterprise controlling 20% of Ghana’s petroleum import market, largely due to the government’s Gold-for-Oil programme.
According to Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP, BOST has shifted from its core mandate of maintaining strategic fuel reserves to engaging in commercial activities.
This places it in direct competition with Oil Marketing Companies (OMCs) and Bulk Distribution Companies (BDCs), raising concerns about the fairness of the current regulatory framework.
Regulatory Margins Under Scrutiny
Mr Yaotse highlighted that BOST continues to receive a regulatory margin of GH¢0.12 per litre, amounting to approximately GH¢600 million annually, despite engaging in commercial ventures.
The company benefits from tax-free assets, unlike private-sector competitors who build and maintain infrastructure while paying taxes.
“The shift in BOST’s operations questions the justification for its continuous receipt of margins designed to fund strategic reserve management, not commercial competition,” he remarked.
Benefits of Commercialization and Listing
ACEP argues that commercializing BOST and listing it on the stock exchange would promote transparency and accountability in its operations.
It would also alleviate the financial burden on consumers by ensuring market-driven practices and reducing dependence on state support.
