The Institute of Energy Security, IES, says the current state of the Bulk Oil Storage and Transportation Company, BOST, puts the country at risk in case of oil price hikes.
The IES says BOST for the past three years has not been able to strategically store enough oil to cushion the country in an emergency period.
Speaking to Citi Business News, the Executive Director of the IES, Paa Kwesi Anamuah Sakyi, warned that consumers will be the biggest losers if government does not take steps to store fuel when the world price drops.
Mr. Sakyi’s remarks come after the opposition National Democratic Congress stated that due to the inefficiencies at BOST, there is practically little or no strategic fuel reserve the country can rely on should there be any emergency.
But speaking to Citi Business News, Mr. Anamuah Sakyi said: “There could be an incident that will make it difficult for a vessel to berth and discharge your oil. In that manner, every country is making a conscious effort to keep some level of finished products in their system so that if there is any challenge, at least from six to eight weeks, they can have some form of relief without calling for any form of importation.”
BOST clears 12-year old GH¢64 million GCB Bank debt
The Management of the Bulk Oil Storage and Transportation Company, BOST, is confident its agenda to turn around the fortunes of the loss-making entity is on course following its ability to fully settle a 12-year old credit facility contracted from GCB Bank.
The loan sourced from GCB in 2008 has been in arrears and attracted several penalties from the bank.
But the Chief Executive Officer of the company, Edwin Provencal, has told Citi Business News the GH¢64 million credit facility, which was sourced to boost the trading position of BOST, was completely settled last month.
According to Mr. Provencal, it would take an amount of US$150 million to turn around the operations of the company.