Managing Director for Bulk Oil Storage and Transportation (BOST), Edwin Provencal, is calling for the re-introduction of the BOST Strategic Stock or Reserves Levy to enable the company achieve a standard fuel reserves of six weeks.
According to him, the levy which has been zeroed out in the price build-up of petroleum products in the country, when re-introduced will help BOST save up the required six weeks of fuel reserves thereby ensuring fuel security in the country.
The levy if re-introduced, will be imposed on every litre of gasoline, diesel and kerosene, further increasing the prices of fuel in the country.
Currently, BOST, as noted by the MD has only two weeks of fuel reserves.
“Today we have about only two weeks, and even though we have two weeks I won’t term them as strategic reserves, because the strategic reserves have to be paid for by the beneficiary which is the public and as I speak to you nobody pays for strategic reserves because it has been zeroed out in the price build-up.”
“So even though we want to enjoy the public good called the strategic reserves, you and I are not paying for it. And if we want to benefit from it then we need to put in the strategic reserves levy that will now force BOST to keep six weeks of reserves,” he stated during a media interaction organised by the State Interests and Governance Authority (SIGA).
The BOST Strategic Stock Levy was introduced under the regime of the Provisional National Defence Council (PNDC) in 1988.
As of 2002, the Strategic Stock Levy placed on every litre of gasoline, kerosene and diesel oil sold in the country amounted to Ghs 30.
The imposition of the levy saw BOST attain its first reserve volume of 30,000 metric tonnes costing $8.8 million. The strategic reserve stock was a mix of diesel, gasoline and kerosene.