BOST turning into private BDC at consumers’ expense – COPEC

Executive Director of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has taken a swipe at the government for failing to prioritise the revival of state energy assets like the Tema Oil Refinery (TOR), while allowing the Bulk Oil Storage and Transportation Company (BOST) to operate like a private profit-making entity.

Speaking in an interview, Mr. Amoah said recent developments in the energy sector, including the suspension of the Energy Sector Shortfall and Debt Repayment Levy, expose a troubling lack of commitment to long-term sector reforms.

“if government indeed wanted to even retool TOR, the tax that you and I are discussing today, you should have seen a component of it go in to revamp TOR,” he said.

His remarks come amid public uproar over high fuel costs and questions over whether government is genuinely committed to rebuilding strategic assets like TOR and enforcing public-interest mandates at BOST.

He questioned why BOST, a public buffer meant to protect consumers from sharp price hikes, is now behaving like a commercial Bulk Distribution Company (BDC).

“We are allowing BOST to behave as though it were a BDC. Meanwhile BOST margin is being collected from you and I when we buy petrol. So we’re keeping BOST running, but the safety net that BOST should have provided for you and I, we’re not encouraging them to that. They are rather behaving as though they are a Private BDC that will need to make profit ?”

He stressed that the government has kept BOST running without enforcing its mandate as a stabilising force in the downstream sector.

“So in recent times the cliche for BOT has been we’ve made so much profit, but fuel prices are going up and for you as a buffer if you are making profit as whose expense are you making profit? he questioned