Ghana's BOST reduces fuel exports to Burkina Faso, Mali and protects local supply
Afetsi Awoonor, the Managing Director of Ghana's state-owned fuel distributor BOST Energies, said that since August, BOST Energys has prioritized domestic demand by reducing diesel and gasoline exports to Burkina Faso, Mali and other neighbouring countries.
Fuel prices in some countries have reached record levels due to the tightening of oil and gas supply worldwide as a result of conflict in Ukraine and Middle East. This is ahead for peak harvest and winter demand.
Mali, Burkina Faso and Niger rely heavily on fuel imported from their coastal neighbours such as Ghana and the Ivory Coast. The three Sahelian nations are ruled over by military governments who seized power through coups. They are battling islamist insurgencies that are linked to al Qaeda or Islamic State.
Awoonor, on the sidelines of a?energy?conference? in Bangkok, said that BOST only managed to provide half of the 80,000 tons of fuel Burkina Faso had requested between July and August.
He added that during the same time period BOST had exported 10,000 tons to Mali. However, the country requested an additional 40,000 tons in August and September.
Awoonor stated that diesel consumption in Ghana continues to increase as the economy expands. Fuel importer and distributor BOST holds a 30 percent market share.
Awoonor stated that "supply is available but at a high price." He added that the sharp increase in demand has strained supply and complicated efforts to maintain domestic fuel prices. Diesel makes up two-thirds of BOST’s supply.
Ghana's fuel prices rose earlier this year due to global supply concerns, but they have since decreased thanks to a stronger currency as well as government intervention.
Awoonor said BOST also plans to build a terminal for liquefied petrol gas (LPG), in the industrial city of Tema, by the fourth quarter of next year. They will then import cooking gas.
He said that the company plans to build a?LPG storage in Kumasi to distribute fuel.
(source: Reuters)
