CEMSE urges government to scrap BOST margins to reduce fuel prices

The Centre for Environmental Management and Sustainable Energy (CEMSE) is urging government to remove the margins allocated to the Bulk Oil Storage and Transportation Company (BOST) from the petroleum price build-up, as authorities explore measures to reduce fuel prices at the pump.

CEMSE argues that Bulk Oil Storage and Transportation Company now operates as a fully commercial entity and generates sufficient revenue from its core services, including storage, transportation, and terminal operations provided to private sector players in the downstream petroleum sector.

Speaking to Citi Business News on Sunday, April 12, 2026, Executive Director of CEMSE, Benjamin Nsiah, said the continued inclusion of BOST margins in fuel pricing places an unnecessary burden on consumers.

He also raised concerns about what he described as the underutilisation of BOST infrastructure, noting that several depots across the country remain idle despite available capacity.

According to him, this raises questions about the rationale for maintaining margins meant for infrastructure development and maintenance.

Mr. Nsiah further questioned BOST’s spending priorities, arguing that revenues from the margin have increasingly become an internal funding source rather than being directed toward expanding or improving key petroleum infrastructure.

“BOST margin should be one of the margins considered by the government to be cut or scrapped from the build-up of petroleum products because BOST now operates as a commercial entity… BOST takes a service fee from private businesses, so they make money on their own,” he said.

He cited the Bolgatanga depot as an example of underutilised facilities, claiming it received no product deliveries over a prolonged period.

“For example, the whole of last year’s products never went to the Bolga depot… if you have this infrastructure and you are underutilising them and continue to burden the Ghanaian petroleum consumer to pay for such margins to upgrade your infrastructure, what is its use?” he questioned.

Mr. Nsiah also alleged that the margin has evolved into a source of operational income used for administrative expenses rather than infrastructure expansion.

“BOST margin now becomes an operational income… to increase their wages and engage in frivolous expenditure because of the free money that consumers give them,” he added.

The call follows reports that Cabinet has directed the Ministers of Finance and Energy to temporarily suspend selected taxes and margins for an initial four-week period to ease pressure on fuel prices for households and businesses.

However, the Institute for Energy Security (Institute for Energy Security) has cautioned against removing the BOST margin, warning that it could affect fuel supply security and hinder infrastructure development in the downstream petroleum industry.