IES Pushes Back Against Plans to Remove BOST Margin; Says Retention of Margin to Safeguard Fuel Supply Security
The Institute for Energy Security (IES) has cautioned government against any move to scrap the Bulk Oil Storage and Transportation (BOST) margin, warning that such a decision could undermine Ghana’s fuel supply security and stall critical infrastructure development.
In a statement issued on April 12, 2026, the policy think tank argued that the BOST margin remains a key financing mechanism for the operations and expansion of the Bulk Oil Storage and Transportation Company Limited, particularly in the areas of storage and distribution infrastructure.
According to IES, Ghana’s fuel consumption has increased significantly over the past two decades, driven by economic growth, urbanisation, and rising transport demand. However, infrastructure expansion – especially in the middle and northern parts of the country – has lagged behind demand, exposing these regions to supply vulnerabilities and higher distribution costs.
The institute noted that BOST plays a central role in maintaining strategic fuel reserves and ensuring supply stability nationwide, stressing that removing the margin would weaken the company’s operational capacity.
“Removing the BOST margin at this critical time will stall ongoing and planned infrastructure projects, reduce investment capacity in storage and logistics, and increase supply risks, particularly in underserved regions,” IES stated.
While acknowledging the need for short-term consumer relief, the institute warned that dismantling structural financing mechanisms such as the BOST margin could create long-term systemic risks that outweigh immediate benefits.
IES therefore urged government to retain the margin and instead consider alternative relief measures that do not compromise infrastructure funding. These include a temporary suspension of the Price Stabilisation and Recovery Levy (PSRL), allowing cross-pricing flexibility between petroleum products, and a marginal reduction in the Energy Sector Levies, particularly the “Dumsor Levy” on the back of improved fuel sourcing.
The institute emphasised that preserving the BOST margin is critical to sustaining investments in Ghana’s petroleum infrastructure and ensuring long-term fuel security.
