Dr. Matthew Opoku Prempeh, Minister of Energy, has praised the Bulk Oil Storage and Distribution Company Limited (BOST) for turning around its financial and operational fortunes.
This follows the state-owned company’s increase in profits to GH 161 million in 2021 following a deficit of GH 291 million in the previous year.
Dr. Opoku Prempeh stated the development proves that state-owned businesses can provide value via effective leadership and management to support national development while speaking at the company’s inaugural Annual General Meeting.
“The transformation is indeed massive, as evidenced in improved operational efficiency. This is the path to go if we should attain the path of State-Owned Enterprises contributing to the fiscal policy of government for its national growth and development agenda. Imagine if 100 SOEs each made GH¢150million net income,” Dr. Opoku Prempeh said.
The Minister disclosed that the improvement in BOST’s revenue was due to a core business strategy and an increase in petrol and diesel sales revenue of about 83 percent.
He added that an amount of US$611 million paid from the US$624 million debt accumulated in 2017 was generated from BOST’s internally generated funds.
The sector minister also lauded the management of the state-owned firm for the effective utilisation of revenue generated from the nine pesewas BOST margin on petroleum products.
Using funds from the petroleum levy, he explained, fuel depots were renovated and repaired, tanks were decommissioned, four river boats were updated for fuel transportation on the Volta Lake, and the Akosombo jetty was improved.
The remaining work includes upgrading and replacing the loading arms, pumps, and valves at all of the depots, including those at the Bolgatanga Petroleum Export Depot, Tema-Akosombo Petroleum Product Depot, and Buipe-Bolgatanga Petroleum Product Depot.
Comparing the numbers, I also observed BOST cutting its administrative costs from GH538 million in 2016 with 349 employees to GH212 million in 2021 with 487 employees.
The energy minister also commended BOST for deploying cost-cutting measures in its operations.
“Genuine administrative costs grow upward and not downward due to factors like inflation among others but I would like to commend management for the prudence that resulted in these massive reductions in the cost of operations.
The company is spending less while achieving more for the government and people of Ghana; from the face of the record, this is an impressive performance that the company’s board and management need to be commended for,” the energy minister stated.
In his closing remarks, Dr. Opoku Prempeh emphasized the BOST of government’s commitment to turning the organization into a successful one.
“I am aware of recent BOST news in the media, but I am also aware of the political economy surrounding the company’s operations.
“We are not falling for those who wish to activate the reverse button,” he emphasized. “Government is also aware of the turf-war to get the corporation derailed.





