The Institute of Energy Security (IES) has attributed part of the fuel price surges in the country to the Bulk Oil Storage and Transportation Company Ltd (BOST).
According to Xatse Derrick Emmanuel, a Research and Policy analyst, BOST’s current inability to store sufficient fuel exacerbates the impact of international market price crises on the economy.
He emphasized that if BOST could store adequate fuel supplies, it would ease pressure on the local market and consumers, but unfortunately, this capability is lacking.
Speaking on Adom FM’s morning show, Dwaso Nsem, Mr. Xatse highlighted that BOST should ideally have storage capacity for three to six months’ worth of petroleum products.
Despite receiving allowances for expansion and maintenance, BOST currently falls short of storing even a three-month supply, as noted by Mr. Xatse during the interview.
“BOST has a lot of tank farms and that is what they should have used to store the fuel so they can release them at such times. But BOST is now renting them out at a fee. With the continuous BOST margin, they should have expanded for us to have a stable price and so we don’t always react to international price adjustment,” he stated.
Following Mr. Xatse’s disclosure, the IES forecasted a 2.0% increase in petrol prices starting July 1, 2024, expected to persist for the next fortnight.
Simultaneously, diesel prices are set to rise by 4.0%, with Liquified Petroleum Gas (LPG) prices projected to spike by 5%.
The anticipated hike in fuel costs is attributed to the depreciation of the cedi against the US dollar and the escalated prices of refined petroleum products globally.