BOST cuts fuel exports to Burkina Faso and Mali over domestic demand

Ghana's state-owned fuel distributor BOST Energies has cut diesel and gasoline exports to neighbouring Burkina Faso and Mali since August, prioritising domestic demand, Managing Director (MD) Afetsi Awoonor has said.

Mr Awoonor told Reuters on Wednesday, September 16, that BOST supplied only half of the 80,000 metric tonnes of fuel requested by Burkina Faso in July and August.

During the same period, BOST exported 10,000 tonnes of fuel to Mali, although the country had requested an additional 40,000 tonnes for August and September, he said.

Mr Awoonor said rising diesel consumption in Ghana, where BOST has a 30% market share, had increased pressure on supplies as economic activity expanded.

“Supply is available, but it’s at a high cost,” he said, adding that sharp increases in demand had strained supplies and complicated efforts to keep domestic fuel prices stable.

Diesel accounts for about two-thirds of BOST's supplies, he said.

Ghana's fuel prices rose earlier this year amid global supply concerns but have since eased, helped by a stronger cedi and government intervention.

Mr Awoonor also said BOST plans to build an LPG terminal in Tema by the fourth quarter of next year and begin importing cooking gas.

The company also plans to build an LPG storage facility in Kumasi to support distribution, with terminals planned at six locations in phases, he said.

Source: Reuters