The Bulk Oil Storage and Transportation Company Limited (BOST) stands to lose close to GH₵40 million in April alone following the government’s suspension of the BOST margin on diesel, the company’s Deputy Managing Director, Nat Salifu Acheampong, has disclosed.

Speaking to JoyNews’ James Avedzi on Monday, April 20, Mr. Acheampong said while the margin on petrol remained intact, the removal on diesel would have serious implications for the state-owned company’s operations and infrastructure plans.

“We still have the margin on petrol. It is only on diesel that we do not have the margin,” he said. “But we’ve been promised it is only for a short period. So we are appealing to Parliament to also sing our song.”

Pipeline project at risk

According to Mr. Acheampong, BOST relies on the margin to finance critical infrastructure, including the replacement of its Accra to Akosombo pipeline. The existing six-inch pipeline, he explained, is to be upgraded to a 12-inch line to improve efficiency and serve the entire 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.

“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.”

GH₵40m off our books is serious business

Asked how much BOST earns from the margin annually and what the suspension would cost, Mr. Acheampong said the monthly impact was substantial.

“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 stated. “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 appealed to Parliament to ensure the margin is restored once the current crisis eases, stressing that the funds are used to “do the good work the people of Ghana have entrusted in our hands".

“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 on petroleum products used to fund the company’s mandate of keeping strategic fuel reserves and maintaining national fuel infrastructure. The government suspended the margin on diesel earlier this month as part of measures to cushion consumers against rising fuel prices.