The Executive Director of the Africa Centre for Energy Policy (ACEP), Benjamin Boakye, has raised concerns over inefficiencies and mismanagement in Ghana’s downstream energy sector, calling for urgent reforms to optimize tax revenue and improve accountability.
Speaking to Alfred Ocansey on TV3’s the Keypoints on Saturday, January 11, 2024, on the current state of the Bulk Energy Storage and Transportation Company Limited (BEST), formerly Bulk Oil Storage and Transportation Company (BOST), Mr. Boakye criticized the institution for straying from its core mandate of maintaining strategic fuel stocks and instead engaging in commercial activities that compete directly with private sector Bulk Distribution Companies (BDCs).
“BOST was established to build capital and compete internationally while keeping strategic stocks. However, it has shifted focus to commercial operations, which not only competes unfairly with BDCs but also renders them inefficient in global competition,” Mr. Boakye stated.
He further noted that BDCs have kept Ghana’s fuel supply steady despite currency challenges, whereas government interventions like the “gold for oil” policy have failed to address fundamental issues in the downstream sector.
According to Mr. Boakye, the downstream sector drains nearly GHS 8 billion annually from taxpayers’ pockets, with no clear benefit.
He criticized policies that derail private sector participation, stating that they are often designed to serve political interests rather than resolve systemic inefficiencies.
“There are ways to maintain strategic stocks without government injecting money into the private sector. However, political systems with inherent weaknesses and inefficiencies continue to justify the existence of BOST, despite its redundancy,” he argued.
Mr. Boakye also revealed that ACEP is set to publish a report detailing the “mess” in the downstream sector.
He stressed the need for better policy alignment to optimize the sector for tax revenue generation rather than private gain.
The Executive Director further called for transparency and accountability, urging state institutions to fulfill their mandates effectively.
“If BOST’s purpose is to maintain strategic stocks, and it has failed to do so, then why does it exist?” he questioned.
He also highlighted the broader implications of inefficiencies in the energy sector, including its impact on fuel availability and pricing.
He urged policymakers to balance resources such as diesel for power generation and non-power uses to avoid shortages.
The ACEP boss concluded by emphasizing the need to refocus efforts on building a resilient downstream energy sector, one that supports national development goals and addresses the challenges faced by consumers and businesses alike.
Mr. Boakye’s remarks have sparked conversations on the sustainability of Ghana’s energy policies, as stakeholders await ACEP’s forthcoming report on the sector.
By Christabel Success Treve
Source:
3news.com
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