The government’s decision to reduce fuel prices in the next pricing window has reignited discussions on the relevance of taxes and levies imposed on petroleum products, particularly those tied to national energy security.

One such levy is the BOST Margin, allocated to the Bulk Oil Storage and Transportation Company Limited (BOST) for the development and maintenance of critical infrastructure used for strategic petroleum storage.

Currently pegged at 12 pesewas per litre, the BOST Margin remains the lowest among all levies on petroleum products. Yet, its significance has become increasingly apparent amid ongoing global energy uncertainties.

Strategic Role in Energy Security

BOST serves as Ghana’s primary state agency responsible for safeguarding energy security. Developments on the international front—including tensions such as the US-Iran conflict—highlight the urgent need for resilient national storage systems capable of absorbing supply shocks.

The company operates six depots across the country and remains a key player in the petroleum storage sector. Available data indicates that BOST currently holds approximately 100,000 metric tonnes of petroleum products, with its storage tanks filled to capacity.

Investigations further reveal that BOST maintains over 30,000 metric tonnes more in reserves than any private tank farm operator in Ghana, positioning it as the leading storage entity in the country.

Why the BOST Margin Matters

Globally, while private sector participation in energy supply is common, governments typically retain firm control over strategic reserves. Ghana is no exception.

Unlike private depot operators, which are largely concentrated in coastal areas, BOST maintains a nationwide presence, with infrastructure spanning both coastal and inland regions. This extensive network requires sustained funding for maintenance and expansion.

Scrapping the BOST Margin, therefore, could significantly undermine the company’s operational capacity. Without this dedicated funding stream, concerns arise over how BOST would maintain its tank farms, pipelines, and other transmission infrastructure critical to national supply stability.

Importantly, the BOST Margin is not intended for administrative or trading purposes but is solely dedicated to infrastructure development and maintenance.

Buffer Against Global Shocks

BOST’s facilities currently hold over three weeks’ worth of strategic petroleum reserves, a buffer that has proven vital during periods of global supply disruption.

Analysts warn that removing the margin could weaken Ghana’s ability to respond effectively to external shocks, especially at a time when many countries are strengthening, rather than reducing, investment in state-backed energy security systems.

Call for Strengthening, Not Weakening

The ongoing debate over scrapping the BOST Margin has been described by industry observers as misguided. Instead, they argue that current global developments should prompt increased investment in BOST to enhance its capacity.

Countries that have been able to withstand recent energy shocks have done so largely because of strong state-backed institutions with adequate financial support.

For Ghana, the message is clear: rather than eliminate the BOST Margin, policymakers should prioritise strengthening the institution to ensure long-term energy security and resilience.