CEMSE Urges Government to Scrap BOST Margin as Fuel Prices Squeeze Ghanaians

The Centre for Environmental Management and Sustainable Energy (CEMSE) is calling on government to immediately abolish the Bulk Oil Storage and Transportation (BOST) margin, describing it as an unnecessary levy that worsens fuel costs for ordinary Ghanaians. According to the group, the fee has become a hidden tax that directly drives up transportation expenses, inflation, and household living costs.

Introduced in 2020 to support BOST’s storage and distribution infrastructure, the margin has grown fourfold in just five years — rising from Ghc0.03 per litre to Ghc0.12 per litre by August 2025. During that period, BOST’s revenue from the levy doubled, jumping from Ghc211 million in 2020 to over Ghc424 million by 2023, even as critics raise concerns about transparency in how the funds are being spent.

CEMSE’s latest report highlights questionable expenditure patterns, noting that BOST’s budget for training, seminars, and conferences ballooned from Ghc3 million in 2020 to Ghc20 million in 2023, while critical projects such as the Afram Plains pipeline remain incomplete. Worse still, some imported pipes for the project were declared unfit for use. These revelations, CEMSE argues, weaken the case for keeping the levy in place.

The group also questioned why BOST, a profitable company that earns billions of cedis in commercial and terminal revenues, should continue to enjoy direct financial support from taxpayers. “If other state-owned firms like the Tema Oil Refinery (TOR) or Electricity Company of Ghana (ECG) do not receive special levies, why should BOST?” the report asked.

CEMSE insists the BOST margin is redundant in a deregulated market where private players already control 80% of fuel storage and transportation. “Every extra pesewa added to fuel prices pushes up the cost of living,” the group warned. “The BOST margin is no longer a safety net; it’s a hidden tax on the people.”

source: citi newsroom