Ghana’s Bulk Oil Storage and Transportation (BOST) Company Limited has refuted media reports suggesting that the company loses US $ 2 million on a monthly basis through transmission of petroleum products.
“We wish to state that, fuel distribution/transmission across the country is not done at the cost of BOST and the company cannot be said to be losing anything to transmission.
“The claim is unfounded and couldn’t have come from BOST.”
This was contained in a statement issued by Marlick Adjei, Head of Communication and External Affairs, in response to the issue.
BOST explained that the distribution of petroleum products across the country is a two-stage process-primary and secondary distribution.
Both stages are funded fully by specific taxes in the petroleum price build-up which is collected by the Ghana Revenue Authority (GRA) and paid through the National Petroleum Authority (NPA), the regulator of the petroleum downstream.
The company said transport service providers present their bills with supporting documents to BOST and the claims are made on the fund at the NPA.
The funds received are then paid to the transporters less the value of any shortages recorded in the values they successfully deliver at the various BOST depots.
“Primary distribution/transmission is the movement of product from the BOST receiving
depot to other BOST depots across the country. This is funded by the Primary Distribution Margin !(PDM).”
Secondary distribution/transmission is when products are loaded from BOST depots
and discharged at various Oil Marketing Companies’ (OMC) sales points across the country.
“This is funded by the Uniform Petroleum Price Fund, UPPF,” the statement concluded.