BOST to lose GH¢40m from suspended margins on fuel—Deputy MD

The Bulk Oil Storage and Transportation Company Limited (BOST) is projected to lose nearly GH₵40 million in April 2026 following the government’s decision to suspend the BOST margin on diesel, a move introduced to ease the burden of rising fuel prices on consumers.

Speaking in an interview with JoyNews’ James Avedzi on Monday, April 20, the Deputy Managing Director of BOST, Nat Salifu Acheampong, explained that although the margin on petrol remains in place, the removal of the diesel component poses significant financial risks to the operations of the state-owned company.

“We still have the margin on petrol. It is only on diesel that we do not have the margin,” Mr Acheampong stated. He added that although authorities have assured the company that the suspension is temporary, BOST is appealing to Parliament to support the restoration of the margin as soon as conditions improve.

Mr Acheampong emphasised that the BOST margin serves as a critical source of funding for the company’s infrastructure development projects. Chief among these is the planned replacement of the existing Accra to Akosombo fuel pipeline, which is essential to improving fuel distribution efficiency nationwide.

He explained that the current pipeline, which measures six inches in diameter, is inadequate for the country’s growing energy demands and is scheduled to be replaced with a more robust 12-inch pipeline. This upgrade is expected to enhance capacity, reduce operational bottlenecks, and ensure more reliable fuel supply across the country.

“All these facilities you have seen, we need to replace the pipeline from Accra to Akosombo. And bear in mind, all this pipeline will be for the benefit of the whole country,” he said.

According to him, funding for such large-scale infrastructure projects is largely derived from the BOST margin. Without it, the company would struggle to mobilise the necessary resources to execute critical upgrades.

“Once we replace the existing pipeline, which is only six inches, with these 12-inch pipelines, we get resources from the BOST margin to bring in all this pipeline. If we lose the BOST margin completely, what it means is that we will not be able to replace the existing pipeline,” he explained.

When asked about the financial implications of the suspension, Mr Acheampong revealed that the company stands to lose approximately GH₵40 million within April alone. He warned that sustained losses of this magnitude could severely impact BOST’s financial stability and its ability to carry out its core mandate.

“Within this month, we are likely to lose close to GH₵40,000,000, and GH₵40,000,000 off our books is serious business,” he said. “If you compare that, assuming we lose 40 million Ghana cedis consistently over a period, it means that our operations will be adversely affected.”

He further appealed to lawmakers and policymakers to prioritise the restoration of the margin once the current economic pressures subside, stressing that the funds are essential for maintaining fuel security and infrastructure development in Ghana.

“We are appealing to the powers that be; when the crisis is over, they will restore the BOST margin for the good people of Ghana,” he added.

The BOST margin is a levy imposed on petroleum products to support the company’s responsibilities, including maintaining strategic fuel reserves and developing national fuel infrastructure. The government’s decision to suspend the margin on diesel forms part of broader interventions aimed at cushioning consumers against the impact of increasing global fuel prices.