Ghana’s state-owned strategic fuel stockholding company, BOSTenergies Limited, said on Thursday that a reduction in diesel and gasoline exports to Burkina Faso and Mali was due to refurbishment work at its northern depot, rather than an imminent fuel shortage in Ghana.
The company said the Bolgatanga depot, a key gateway for fuel supplies to the Sahel, was nearing completion of a revamp that had temporarily disrupted its normal distribution route to regional markets.
“BOSTenergies wishes to correct an inaccurate implication carried by the published report that the reduction in regional export volumes reflects an imminent fuel shortage in Ghana, warranting the rationing of available supply to Burkina Faso and Mali to safeguard local supply security,” the company said in a statement.
“There is no imminent fuel shortage in Ghana, and no cutting of supply has been implemented on this or any other basis,” it added.
The statement clarified comments made by Managing Director Afetsi Awoonor in an interview with Reuters on Wednesday on the sidelines of the Gastech conference in Bangkok, Thailand, which indicated that reduced exports were partly aimed at safeguarding domestic supply.
BOSTenergies said no political, security or diplomatic considerations played a role in the decision.
Under normal operating conditions, the company transports fuel for regional export through an integrated network of pipelines and barges linking its depots from southern Ghana to the north.
The route enables BOSTenergies to supply regional markets at competitive prices while meeting its required profit margins, it said.
While the Bolgatanga depot is being refurbished, the company has maintained regional supplies by transporting fuel by bulk road vehicles from its coastal depot in Tema, it said.
“Full regional supply capacity will be restored on completion of the Bolgatanga depot revamp,” BOSTenergies said.
BOSTenergies supplied about half of the 80,000 metric tons of fuel requested by Burkina Faso in July and August, Awoonor told Reuters on Wednesday.
During the same period, the company exported 10,000 metric tons of fuel to Mali, although the country had requested an additional 40,000 tons for August and September, he said.
Mali, Burkina Faso and Niger rely heavily on fuel imports from coastal West African countries, including Ghana and Ivory Coast.
In Ghana, where BOSTenergies has about a 30% share of the fuel market, diesel consumption continues to rise as economic activity expands, Awoonor said.
“Supply is available, but it’s at a high cost,” he said, adding that a sharp increase in demand had strained supplies and complicated efforts to keep domestic fuel prices stable.
Diesel accounts for about two-thirds of BOSTenergies’ supplies, Awoonor said.
Ghana’s fuel prices rose earlier this year amid global supply concerns but have since eased, helped by a stronger currency and government intervention.
BOSTenergies is also planning to expand its LPG infrastructure. Awoonor said the company plans to build an LPG terminal in the industrial city of Tema by the fourth quarter of next year and begin importing the cooking fuel.
The company also plans to build an LPG storage facility in Kumasi, Ghana’s second-largest city, to support distribution, he said.
BOSTenergies plans to build terminals at six locations in phases, Awoonor added.
Discover more from Energy News Africa
Subscribe to get the latest posts sent to your email.