The Bulk Oil Storage and Transportation Limited (BOST) has commenced the storage of Ghana's strategic fuel reserves at its Accra Plains Depot near Tema to ensure regular and uninterrupted supply of petroleum products.
The first reserve volume of 30,000 metric tonnes costing 8.8 million US Dollars of the strategic reserve stock includes a mix of diesel, Gasoline and kerosene. It is being financed out of the Strategic Stock Levy of 30 cedis placed on every litre of gasoline, kerosene and diesel oil sold in the country.
Part of the first consignment of the strategic reserve stock which can cater for weeks? requirements for the country, is expected to be transported in the coming weeks to BOST's Depots in Buipe in the Northern Region, Bolgatanga in the Upper East Region and Takoradi in the Western Region.
Commissioning the initiative at the BOST Accra Plains Depot, Energy Minister, Albert Kan-Dapaah said government was determined to safeguard Ghana's energy requirement through strategic reserve stocks and the utilisation of the country's energy resources.
He said government on the assumption of power found out that there were no strategic stocks in the country despite the payment of Strategic Stock Levy by consumers. The Provisional National Defence Council introduced the Strategic Stock Levy in 1988.
Mr. Kan-Dapaah said it was for this reason that government decided to pursue a solution path, within reasonable limits, for the country to be provided the necessary insurance and safeguards to ensure that the engine of the nation's economy was not interrupted.
He said electricity supply, coupled with petroleum product availability has major dislocation consequences on the national economy when there was a shortage, which arose from many reasons, particularly when the Tema Oil Refinery (TOR) had problems.
The Energy Minister said governments' target is to create a reserve stock that would meet national demand for six weeks in the case of severe shortage of petroleum products, adding that government would continue to apply funds from the Strategic Stock levy to meet this objective.
Mr. Kan-Dapaah disclosed that the amount collected from the Strategic Stock Levy in a year could procure a week's storage volume equivalent of gasoline, diesel oil and kerosene.
He stressed that the production and fuel processing capacity of the TOR would be a major complement to the stock reserve programme at BOST.
The mechanisms for managing and drawing on the stocks, he said, had been worked out and that the BOST and the Energy Ministry has a very clear understanding as to the circumstances under which the stocks could be drawn.
BOST has to obtain the Ministry's consent before drawing from the reserve. Mr. Kan-Dapaah stressed that the volume of fuel to be stockpiled under the strategic reserve programme would however not interfere with normal storage and distribution of fuel. "Our nation has experienced enough supply dislocations, over the past few years, some of them caused by the ripple effect of mere rumours of shortages at TOR. Today we seek firmly to put that era behind and we call upon Ghanaians to support government by ensuring the efficient use of energy including petroleum products", he said.
The Managing Director of BOST, Joseph Addo-Yobo, said even though the first consignment represents a week's national demand, it was an important beginning, considering the fact that no country in the sub-region except Cote D'Ivoire has stocks earmarked for strategic use. He said the commencement of the programme should be viewed as a bold attempt by government to ensure a higher and sustainable economic growth.
BOST had also drawn-up a five-year storage expansion programme which when completed would enable the country to have twelve weeks of strategic fuel reserves. Ghana's quest to become a middle-income economy by 2020 could not be achieved without regular uninterrupted supplies of petroleum products.
The Managing Director called on government to increase the strategic stock levy to 50 cedis per litre of fuels from the current 30 cedis to enable BOST achieve the long term target of the programme.
The Minister and other dignitaries at the ceremony were taken round the depot to inspect the tankers laden with part of the consignment to be taken to the other depots in the regions.
