Dr. Riverson Oppong, the Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), has signaled a major policy shift by rejecting calls to scrap the Bulk Oil Storage and Transportation (BOST) Company Limited.
Dr. Oppong emphasized that BOST remains a vital pillar for national energy security and the successful implementation of the zonalisation policy.
He argued that despite previous personal reservations, a deeper understanding of the institution’s role in stabilizing the downstream sector has necessitated a more cautious, medium-term approach to structural reforms rather than a hasty dissolution.
“BOST is needed because today it is helping zonalisation to help unify petroleum pricing policy through the UPPF. I was one of the people who was fighting against zonalisation until I understood the essence of it. Let’s look at what we can do easily by taking that one cedi off and have a holistic conversation in a room for a medium-term solution.”
Dr. Riverson Oppong, the Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC)
The COMAC boss further elaborated that his current stance follows extensive internal consultations and a democratic mandate from his board, where 90% of members voted to maintain the status quo regarding zonalisation and BOST’s operational mandate.
Dr. Oppong admitted to being a former critic of the system, previously advocating for its removal alongside other industry stakeholders who felt the policy had outlived its usefulness.
However, he now maintains that BOST’s infrastructure is essential for the Unified Petroleum Pricing Fund (UPPF) to function effectively, ensuring that petroleum prices remain uniform across Ghana’s various geographical zones.
He cautioned against attacking the operations of state institutions during volatile periods, suggesting instead that the government should focus on immediate relief by reducing the one-cedi margin on the price build-up.
The Strategic Necessity of BOST and Zonalisation
The argument for maintaining BOST is deeply rooted in the logistics of the “zonalisation policy,” a system designed to streamline the distribution of petroleum products. Without BOST’s network of six strategic depots including the Accra Plains, Kumasi, and Buipe facilities the country would struggle to maintain the “unified petroleum pricing policy” that ensures a liter of fuel costs the same in Hamile as it does in Accra.
Dr. Oppong noted that while critics point to inefficiencies, the institution’s current role in helping “unify petroleum pricing” is a buffer against regional price disparities that could lead to economic instability in remote areas.
Impacts of Scrapping the National Storage Backbone
According to Dr. Oppong, the absence of BOST would create a vacuum in Ghana’s strategic reserves, leaving the nation vulnerable to global supply shocks. Currently, BOST is mandated to keep “strategic stocks” to last the country for several weeks in the event of a crisis.
If the institution were scrapped, the downstream sector would lose the primary mechanism for the “Primary Distribution Margin (PDM),” which funds the movement of products between depots.
Dr. Oppong warned that taking a “hasty decision in these three days” to dismantle such a framework could lead to a collapse in the supply chain, as private players may not have the capacity or the mandate to prioritize national energy security over profit.
Towards a Holistic Energy Transition Strategy
While Dr. Oppong acknowledges that the debate over BOST and zonalisation is a “deeper conversation,” he maintains that it must be treated as a “medium-term issue” rather than a short-term fix.
He urged stakeholders and the “previous government” actors to avoid “attacking institutions and operations” when market conditions fluctuate.
Instead, the COMAC CEO is calling for a “holistic solution” that involves all industry players sitting in one room to chart a path toward a more efficient downstream sector.
For now, the focus remains on protecting the “operations” that keep the pumps running while seeking small, immediate price reductions to ease the burden on the Ghanaian consumer.
READ ALSO: Kwasi Kwarteng Urges Ofori-Atta to Return And Face Justice
