Disregard IES Twisted Interpretation Of BOST Increased Margin – Ghanaians Told | Business News

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The Head of Corporate Communications and External Affairs for Bulk Oil Storage and Transportation (BOST) Company Limited, Mr Marlick Adjei has debunked the release from the stables of the Institute for Energy Security (IES) regarding BOST increased margins.

From the release of the Institute for Energy Security (IES), a respected civil society organization, it is asking the government for a withdrawal of the purported upward adjustments in the margins as the petroleum margins were reviewed through the regulator of the petroleum downstream, National Petroleum Authority (NPA).

According to the Head of Corporate Communications and External Affairs of BOST, the concern of the company about the release of IES has to do with the sensationalized interpretation of the increase in the BOST margin.

He again mentioned that BOST is concerned about the claim of the Institute for Energy Security (IES) that it [BOST] is the custodian and manager of the Primary Distribution Margin (PDM) and that the Gh 3 pesewas upward adjustment of the BOST margin 11 months ago has not been properly justified by BOST and also that the company continues to underperform despite the intervention.

In responding to the concerns raised in the release of IES, the Head of Corporate Communications and External Affairs has copied Peacefmonline.com a release to state that the BOST margin was introduced purposely for the operation and maintenance of the petroleum storage and distribution infrastructure.

“Given the huge investments made in building these over the years, failure on the parts of successive governments to review the margin from 2011 resulted in massive dilapidation and in some instances, decommissioning of some of these strategic assets”, the statement read.

Mr Marlick Adjei in the release stated that the upward adjustment that BOST received was a decision in time to stem the tide of dilapidation and bring these assets back to life and into use.

“The twisted interpretation is therefore unfortunate and should be disregarded with the full force of every meaningful appreciation of the need to keep strategic stocks of petroleum products for the nation”, he stated.

Touching on the Primary Distribution Margin (PDM) Mr Marlick Adjei in the release said that the tax in the petroleum price build-up which is utilized in the distribution of petroleum products across depots in the country is targeted at ensuring uniformity in petroleum product prices across the nation.

“It was under the management of BOST until 2012 when the responsibility was transferred to the National Petroleum Authority (NPA). The categorical statement that BOST is still managing this margin is simply false and should be disregarded”, the BOST debunked IES assertions.

With regards to the Gh 3 pesewas upward adjustment in the BOST margin, the release from BOST indicates that its initial request was Gh 9 pesewas to restore the value to the 2011-dollar value but then the Gh 3 pesewas increment has been efficiently utilized by the company.

Outlining the state of the company [BOST] from January 2017, the Head of Corporate Communications and External Affairs noted that the company had a debt of $623 million dollars to suppliers and related parties.

Again, he said in the release that, in January 2017 BOST faced a challenge of $36 million claims by Bulk Distribution Companies (BDCs) for products lost in the BOST system; decommissioned petroleum barges, non-operational Tema-Akosombo-Petroleum-Product-Pipeline (TAPP) since 2015 and also old fashioned pumps and meters across the depots.

The release from the BOST further indicated that the company owed Ghc237 million Cedis to a number of domestic banks including Ghana Commercial Bank, Fidelity Bank, UMB and others; thus, 15 tanks were decommissioned out of 51 tanks of the company.

But he recounted that out of the upward adjustment in BOST margin, continuous government support and the efficient management of BOST as an entity, the company now boasts of a functional Bolgatanga depot exporting products to the landlocked countries of the Sahel region.

The release from BOST recounted that “the company has successfully repaired 9 out of 15 decommissioned tanks, paid $50 million debts to suppliers and related parties, successfully vetted BDC lost product claims of $36 million down to $14.8 million and fully repaired Buipe Bolgatanga Petroleum Product Pipeline”.

“We have fully repaired Tema Akosombo Petroleum Product Pipeline, 90 per cent completed Bulk Road Vehicle Truck Park at Bolgatanga, outright settlement of debts owed domestic banks, successful repair of all petroleum barges, return to shipping 3.3 million litres of products per trip of the barges from Akosombo to Buipe which is equivalent of 62 trucks loading an average of 54,000 litres per truck and cutting down the operational expenses of BOST per year from a humongous Ghc453 million in 2016 to Ghc190 million among others”, the release stated.

“We wish to state categorically that BOST, the strategic petroleum storage and distribution company of Ghana has never been better managed. We at this point call on the general public to have confidence in the current management and look forward to nothing but the best from the company”, the release added.

Source: Daniel Adu Darko/Peacefmonline.com

 

 

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