The government’s decision to reduce fuel prices in the next pricing window has reignited debate over the relevance of taxes and levies on petroleum products, particularly the BOST Margin.
The BOST Margin, currently pegged at 12 pesewas per litre, is one of the lowest levies within the fuel price build-up. It is allocated to BOST Energies Limited to support the development and maintenance of critical infrastructure for strategic petroleum storage.
At a time of global uncertainty, especially amid tensions affecting international oil supply chains, the importance of a well-resourced national storage system has come sharply into focus. BOST Energies plays a central role in Ghana’s energy security, serving as the country’s strategic buffer against external shocks.
The company currently operates six depots across the country and holds about 100,000 metric tonnes of petroleum products. Its storage tanks are reportedly full, positioning it as the leading player in Ghana’s storage sector, with volumes exceeding those of any private tank farm by more than 30,000 metric tonnes.
Unlike private operators, whose facilities are largely concentrated along coastal areas, BOST’s infrastructure extends both inland and along the coast, making it critical for nationwide fuel distribution and emergency supply.
Maintaining such a network requires sustained investment. The BOST Margin is specifically designed to fund infrastructure development and maintenance—not administrative or trading activities. Scrapping the levy would therefore deprive the state entity of its primary source of funding for maintaining tank farms, pipelines, and other strategic assets.
Currently, BOST’s storage capacity accounts for over three weeks of strategic petroleum reserves, a crucial safeguard in times of global supply disruptions. This reserve capacity is particularly significant given ongoing geopolitical tensions, including the US-Iran conflict, which continue to threaten global oil stability.
Analysts warn that removing the BOST Margin could weaken the country’s ability to respond to such shocks, leaving Ghana more vulnerable to supply disruptions and price volatility.
Globally, while private sector participation in energy storage is common, governments typically maintain strong control over strategic reserves through state-backed institutions. Ghana’s model is no different, and BOST remains at the centre of that framework.
Rather than scrapping the margin, industry observers argue that the current global climate should prompt policymakers to strengthen support for BOST, ensuring it remains capable of safeguarding national energy security.
In this context, calls to abolish the BOST Margin risk undermining a critical pillar of Ghana’s petroleum infrastructure at a time when resilience is more important than ever.
By: John Kojo Graham
