Story By: Ishmael Barfi
The Africa Centre for Energy Policy (ACEP) has issued a stark warning about the state of Ghana’s petroleum sector. It cites inefficiencies, corruption, and unsustainable taxation frameworks as major threats to the country’s economic stability.
According to ACEP, Ghana’s petroleum taxation framework is opaque, complex, and ripe for reform. The current system is characterized by a lack of transparency, with consumers having little understanding of how fuel prices are determined.
Speaking at a press conference held on Wednesday, 16th January, 2025 at its Office in Accra, Kodzo Yaoste, Policy Lead for Petroleum and Conventional Energy at ACEP indicated that, “The petroleum taxation framework in Ghana is a ticking time bomb,”
Stressing that, “The lack of transparency and accountability has created an environment in which inefficiencies and corruption can thrive, with consumers ultimately bearing the brunt of the costs.”
Furthermore, ACEP also criticized the rapid increase in margins, which has resulted in a significant financial burden on consumers. The BOST Margin, UPPF, and PDM have all seen significant increases in recent years, with the BOST Margin rising by 300%, the UPPF by 429%, and the PDM by 247% between 2018 and now.
“The margin increases are a recipe for disaster,” the Policy Lead emphasized saying “Consumers are already struggling to make ends meet, and these increases are only serving to further exacerbate their financial burdens.”
The Bulk Oil Storage and Transportation Company (BOST) has also come under fire for its deviation from its core function of maintaining strategic stock. Instead, BOST has begun to engage in commercial activities, creating unfair competition in the market and further exacerbating the challenges faced by consumers.
To ensure efficiency and transparency, ACEP is calling on policymakers to take urgent action to address the inefficiencies and corruption in Ghana’s petroleum sector. This includes implementing reforms to increase transparency, reducing margins, and ensuring that BOST returns to its core function.
“The time for action is now,” said Yaotse adding “We cannot afford to wait any longer to address these issues. The future of Ghana’s economy depends on it.”
Source: www.thenewindependentonline.com
