The Institute for Economic Research and Public Policy (IERPP) has urged Parliament not to pass the National Petroleum Authority (NPA) Bill, 2026 in its current form, warning that some provisions could undermine the financial sustainability and strategic role of BOST Energies.
The bill, currently before Parliament, seeks to strengthen the regulatory framework governing Ghana’s downstream petroleum sector, including the storage, transportation and distribution of petroleum products.
Addressing a press conference in Accra, IERPP Executive Director Prof. Isaac Boadi argued that some provisions of the proposed legislation could give the NPA and the sector minister greater control over decisions affecting BOST’s operations.
“BOST Energies is not an ordinary company. It is a state-owned entity responsible for holding Ghana’s strategic fuel reserves and maintaining the national network of depots and pipelines,” the institute said.
IERPP maintained that any regulatory changes affecting BOST must take into account the company’s strategic national responsibilities and its ability to generate sufficient revenue to maintain critical petroleum infrastructure.
IERPP Warns of Potential Job Losses
The institute further warned that weakening BOST financially could have implications for employment.
According to IERPP, close to 50 per cent of BOST’s 658 employees could potentially lose their jobs if the proposed changes significantly affect the company’s revenue and operations.
The institute argued that such an outcome would run counter to the government’s efforts to expand employment opportunities under its 24-hour economy policy.
“You cannot promise an economy where one job creates opportunities for three people across three shifts while allowing hundreds of existing jobs at BOST to be put at risk,” the statement said.
BOST Records Strong 2025 Performance
IERPP also cited figures from the 2025 State Ownership Report to highlight what it described as BOST’s impressive financial turnaround.
According to figures cited by the institute, BOST’s total revenue increased from GH¢1.33 billion in 2024 to GH¢3.841 billion in 2025, representing an increase of about 189 per cent.
Operating revenue also increased from approximately GH¢1.3 billion to GH¢3.809 billion, representing growth of about 195 per cent.
Net profit, meanwhile, rose from GH¢398.40 million in 2024 to GH¢683.96 million in 2025, an increase of about 72 per cent.
IERPP, however, acknowledged that BOST’s operating margin declined from 31 per cent to 19 per cent, which it attributed to higher direct trading costs.
The institute questioned why regulatory changes should be introduced in a manner it believes could weaken the company despite the reported improvement in its financial performance.
IERPP Raises Three Key Questions
IERPP raised three questions regarding BOST’s responsibilities and its ability to remain financially sustainable under the proposed regulatory framework.
“How can BOST be responsible for strategic reserves if decisions on funding, stock levels and release remain with other authorities?” the institute asked.
It further questioned how BOST could effectively maintain its depots and pipelines if charges for its services required regulatory approval without what it described as a clearly defined cost-reflective mechanism.
The institute also raised concerns about the licensing of competing depots and the potential impact on BOST’s commercially viable operations.
“How can BOST stay sustainable if competing depots are licensed and profitable business is drawn away?” it asked.
IERPP warned against creating a petroleum logistics structure in which private operators potentially control more profitable aspects of the industry while BOST retains costly national obligations.
“Ghana must not end up where private operators enjoy the most profitable parts of petroleum logistics while BOST is left holding expensive national obligations,” it said.
IERPP Demands Review of Bill
The institute consequently called for the withdrawal and comprehensive review of the NPA Bill, 2026 before its passage.
IERPP wants BOST’s mandate clearly defined and protected, including what it says should be the company’s ability to sell petroleum products directly to Oil Marketing Companies (OMCs).
It also called for strategic fuel reserves to remain under national control, with BOST serving as the principal manager.
The institute further proposed dedicated funding for strategic reserves and petroleum infrastructure, including the repurposing of the BOST margin to finance new depots.
IERPP also advocated a transparent and cost-reflective tariff mechanism to ensure that BOST generates sufficient revenue to maintain its infrastructure and fulfil its national obligations.
On competition, the institute argued that Bulk Distribution Companies (BDCs) should not be permitted to establish inland depots in a manner that could undermine BOST’s operations.
It also called for the NPA to remain an effective regulator rather than becoming a participant in the petroleum market.
Prof. Boadi maintained that any reform of the downstream petroleum sector must strike a balance between effective regulation and the financial sustainability of strategic state-owned infrastructure.
“Responsibility without authority is unfair. Responsibility without funding is unsustainable. National infrastructure without sustainable revenue is a liability waiting to happen,” he concluded.
