The Institute of Energy Security (IES) has pointed to Bulk Oil Storage and Transportation Company Ltd (BOST) as a significant contributor to the recent surge in fuel prices across Ghana.

According to Xatse Derrick Emmanuel, IES Research and Policy Analyst, BOST’s failure to maintain adequate fuel reserves during international price fluctuations has profoundly impacted market conditions for local consumers.

Speaking on Adom FM’s Dwaso Nsem program, Xatse highlighted that BOST is mandated to store petroleum products for up to six months but currently needs to catch up to this target, unable to store even three months’ worth. Despite receiving funds for infrastructure expansion and maintenance, BOST has reportedly opted to lease out its tank farms rather than utilize them for strategic fuel storage.

The IES has projected significant price hikes effective July 1, 2024, including a 2% increase in petrol prices, a 4% rise in diesel prices, and a 5% escalation in Liquefied Petroleum Gas (LPG) prices. These adjustments are attributed to the depreciation of the Ghanaian cedi against the US dollar and the global upsurge in petroleum prices.

If these projections hold true, it could mean a significant increase in the cost of living for Ghanaians, particularly those who rely on these fuels for their daily activities. This critique underscores ongoing concerns about Ghana’s energy security strategy and its implications for domestic fuel pricing amidst international economic pressures.