BOST cuts fuel exports to keep Ghana supplied

Rising fuel consumption in Ghana, coupled with higher international procurement costs, is putting pressure on the Bulk Oil Storage and Transportation Company (BOST), forcing the company to cut fuel supplies to some neighbouring countries.

BOST Managing Director Afetsi Awoonor said the company has reduced shipments to Burkina Faso and Mali since August as it works to meet growing demand on the domestic market.

According to a report by The New Republic, he said Burkina Faso requested about 80,000 metric tonnes of fuel for July and August, but BOST supplied roughly half of that volume.

Mali also received about 10,000 metric tonnes of fuel despite requesting an additional 40,000 metric tonnes for August and September.

According to Awoonor, increased economic activity in Ghana has pushed up fuel consumption, particularly diesel, which now accounts for about two-thirds of BOST’s total fuel volumes.

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BOST, which accounts for about 30% of petroleum distribution in Ghana, has had to balance increased domestic consumption with demand from fuel-importing countries in the Sahel.

Awoonor said the challenge is not a lack of fuel on the international market but the rising cost of procuring it.

Higher international prices have increased the cost of bringing petroleum products into the country, putting pressure on the supply chain and making it more difficult to maintain stable prices at fuel stations.

Ghana had earlier recorded increases in fuel prices amid concerns about possible disruptions to global oil supplies following geopolitical tensions in Eastern Europe and the Middle East.

Fuel prices have since eased, supported by the stronger cedi and government interventions.

BOST expands LPG plans

BOST is preparing to take on a bigger role in Ghana’s LPG supply chain.

The company plans to build an LPG import terminal in Tema by the fourth quarter of next year, which will allow it to import cooking gas directly into the country.

BOST is also planning an LPG storage and distribution facility in Kumasi.

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The Kumasi facility will form part of a phased plan to establish similar terminals in six locations across Ghana.

The expansion is expected to increase the country’s LPG storage and distribution capacity and improve access to cooking gas.

DR/MA

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