Ghana: ACEP Proposes Commercialisation And Stock Exchange Listing For BOST

The Africa Centre for Energy Policy (ACEP) is advocating for the commercialization of the Bulk Oil Storage and Transportation Company (BOST) and its listing on the Ghana Stock Exchange.

This move is aimed at promoting transparency and accountability in BOST’s operations.

Currently, BOST receives a 12-pesewa margin on every litre of petroleum products, generating nearly GH¢600 million annually.

The margin was designed for the company to use to develop a network of pipeline infrastructure across the country and keep strategic stock.

However, ACEP argues that BOST has strayed from its core mandate of maintaining strategic stock reserves and is instead competing with private bulk oil distributors that pay taxes.

Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP, emphasizes that BOST’s current operations are unnecessary and that commercialization and listing on the stock exchange would ensure transparency and accountability.

He also revealed that BOST controls about 20% of the petroleum import market under the Gold for Oil program.

“The market we operate in now shows that we do not need BOST. Or, if we are to keep BOST, we should commercialize it and list it on the stock exchange,” Yaotse stated.

“This will ensure transparency and accountability in BOST operations while reducing the burden on consumers. That’s another GHp 0.12 removed from payments,” he added.

ACEP believes that transitioning BOST into a commercially driven entity will reduce the financial burden on consumers, foster greater efficiency, and promote accountability within the downstream petroleum sector.

Source: https://energynewsafrica.com