IES urges BOST to use increased margin to boost its operations

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The Institute of Energy Security (IES), which had backed calls by the Bulk Oil Storage and Transportation Company, BOST for an increase in the BOST margin, has welcomed the increment of the BOST Margin in the price build-up of petroleum products.

The IES says it expects BOST to use the marginal increase prudently for the company’s benefit.

This follows a review in the price of the BOST margin from 3 pesewas to 6 pesewas by government.

Speaking to Citi Business News, Executive Secretary for IES, Nana Amoasi, said despite the increase, they are more concerned about how BOST will utilize the margin.

“Sure, we are actually okay, but it is contingent on how they will put it to use. Actually, we called for a governance structure of this new cash-flow so that we are sure that they won’t use it to double their staff numbers over a 3-year period again without adding value to what Ghanaians are giving them already,” he said.

Earlier this year, the Managing Director of the Bulk Oil Storage and Transportation Company, BOST, Edwin Provencal, appealed to government to increase the BOST margin in the petroleum price build-up from 3 pesewas to 12 pesewas.

According to him, the current margin is inadequate to put the company in a strategic position to fix its equipment which are obsolete.

The BOST Margin has remained at 3 pesewas per litre since 2011.

In December 2019, it almost went up to 6 pesewas per litre, but the decision was quickly reversed following intense pressure on government by opposition parties as well as CSOs such as the Chamber of Petroleum Consumers (COPEC).

Fuel prices to go up in 1st pricing window in June – IES predicts

Prior to the increase in the BOST Margin, the Institute of Energy Security, IES, had predicted an increase in fuel prices in the first pricing window in June.

The Institute explained to Citi Business News that, per its analysis, it expects the prices of fuel on the domestic market to go up, and above April 2020 levels.

IES attributed this to the 23.25% surge in price of Brent crude oil, in addition to the 41.80% and 22.68% significant rise in the prices of Gasoline and Gasoil respectively on the international market.

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