The Bulk Oil Storage and Transportation Company Limited (BOST) has launched an internal investigation into prolonged delays in its depot upgrade project, a setback that has caused logistical bottlenecks and strained Ghana’s petroleum supply chain.
The US$23 million project, awarded to Automation Services Limited (ASL) in May 2022, was expected to modernize BOST’s storage and distribution infrastructure.
However, despite receiving US$16 million—nearly 70% of the contract sum—the contractor has yet to complete key components, leading to industry-wide concerns.
Faced with persistent delays, BOST has interdicted its General Manager for Assets and Infrastructure, Nicholas Samari, citing poor oversight of the project. The company is now scrutinizing procurement decisions, contractor performance, and financial disbursements to identify accountability gaps.
BOST’s management has also hinted at a possible forensic audit to determine whether the contractor met its obligations and if stronger internal controls are needed to prevent similar project failures in the future.
Impact on Fuel Supply Chain
The stalled upgrade has severely impacted fuel distribution, forcing the National Petroleum Authority (NPA) to repeatedly suspend its zonalisation policy.
This has allowed petroleum marketers to transport fuel across different zones to prevent shortages, but at a cost.
Dr. Riverson Oppong, CEO of the Chamber of Oil Marketing Companies (COMAC), warned that continued inefficiencies could disrupt fuel security and lead to higher operational costs for oil marketing companies (OMCs).
He cited the Kumasi Depot as a major concern, noting that supply disruptions have forced OMCs to source fuel from Tema, resulting in increased transportation costs and delays.
“The impact is severe. Last week, several of our members struggled to secure adequate fuel, leading to shortages that affected businesses and consumers alike. The longer this persists, the harder it becomes to shield consumers from rising costs,” Dr. Oppong explained.
OMCs have so far resisted passing additional costs onto consumers, but analysts caution that sustained inefficiencies could make price hikes inevitable. Market observers warn that prolonged instability could also undermine investor confidence in Ghana’s downstream petroleum sector.
Calls for Urgent Action
Industry experts are urging BOST to fast-track infrastructure repairs and modernisation efforts, stressing that a fully operational and efficient downstream sector is critical for price stability and economic resilience.
“The priority now should be a full financial and technical audit to determine whether ASL can deliver or if a new procurement process is required. There also needs to be transparency about lessons learned to prevent similar setbacks in future projects,” a senior industry analyst stated.
BOST has not yet indicated whether it will seek legal or financial redress against ASL, and the original contract terms remain undisclosed, making it unclear if penalties for non-performance were included.
As the investigation unfolds, stakeholders await decisive action from BOST to restore confidence in its project management and ensure that Ghana’s fuel supply infrastructure is safeguarded against further disruptions.
