Energy Minister Matthew Opoku Prempeh has revealed that the introduction and subsequent increment of the Bulk Oil Storage and Transportation Company (BOST) margin from 6 pesewas to 9 pesewas increased the company’s revenue by about 80 percent in 2021.
BOST margin revenue increased from GH¢212million to GH¢380million in 2021. Although there have been calls to remove the BOST margin to cushion consumers against high fuel prices, the minister emphasised that it will not be taken off anytime soon given its benefits.
According to him, the levy is a strategic source of income for the state; and it is very important for the operations and activities of state institutions and the country’s economy.
He made this statement at the Annual General Meeting of BOST, where the company reported a profit after tax of GH¢164million for the 2021 financial year.
He said: “The margin will be accounted for and serve the people of Ghana to ensure that petroleum products are available in the country in case of any uncertainties. I can promise that the BOST margin on the price build-up for petroleum products is not going to be taken out anytime soon. We will use the fund efficiently and effectively to protect citizens against private sector interests, which is always about profits for their businesses”.
On his part, Board Chairman for BOST Ekow Hackman told the board that restoring part of the BOST margin’s lost value by government in June 2021 has brought an element of financial stability to the company. He said the levy on petroleum price ensures that BOST can repair and maintain facilities in parts of the country such as the Bolgatanga, Buipe, Savelugu and Akosombo areas, where private profit-oriented companies will not readily venture.
According to him, the company has experienced massive transformation and is on the path to declare dividends soon.
“Passion, performance and excellence remain at the heart of our business to ensure that we fulfil our mandate as a company and deliver value to the shareholders.
“During 2021, BOST regained the confidence of the financial community; with banks which had previously closed their doors to us now welcoming us with credit lines on more favourable terms, enabling us to bring in larger volumes of fuel products and trade profitably as a result,” Mr. Hackman said.
Also present was the Director-General of SIGA, Edward Boateng – who said given the fiscal and infrastructural challenges of BOST, there is still more room for improvement. He noted that with innovative thinking, perseverance and teamwork from all stakeholders, more can be achieved.