The Institute for Economic Research and Public Policy (IERPP) has cautioned Parliament against passing the National Petroleum Authority (NPA) Bill 2026. The think tank warns the proposed legislation could significantly weaken the Bulk Oil Storage and Transportation Company (BOST) despite its strong financial performance. BOST reported a net profit of GH¢683.96 million in 2025, a 72% increase from the previous year.
IERPP argues that certain provisions in the Bill would grant the NPA and the sector minister excessive control over BOST's operational decisions. This increased oversight could hinder BOST's ability to manage itself effectively. The Institute highlighted that BOST is crucial for holding Ghana’s strategic fuel reserves and maintaining the national network of depots and pipelines. Weakening BOST could compromise national energy security and lead to substantial job losses.
This development fits into a broader narrative of regulatory reforms in Ghana's energy sector, often aimed at enhancing efficiency and oversight. However, IERPP's concerns underscore the potential for unintended consequences on state-owned enterprises. BOST's 2025 performance, with total revenue rising 189% to GH¢3.841 billion, demonstrates its economic importance. The debate over the NPA Bill 2026 highlights the delicate balance between regulation and operational autonomy for key national assets.
Professor Isaac Boadi, Executive Director of IERPP, stated that BOST is not an ordinary company. He emphasized its critical role in national infrastructure and strategic reserves. Professor Boadi warned that responsibility without authority or funding is unsustainable. He added that national infrastructure without sustainable revenue becomes a liability.
The immediate implication is increased scrutiny on the NPA Bill 2026 as it progresses through Parliament. Lawmakers will need to weigh the benefits of tighter regulation against the potential risks to BOST's financial health and operational mandate. Stakeholders, including energy sector players and labor unions, will closely monitor the legislative process. The government's commitment to job creation, particularly its 24-hour economy promise, will also be tested if job losses at BOST become a reality. The market will watch for any impact on fuel supply stability and pricing.
IERPP's concerns are rooted in BOST's strong financial results for 2025. The company's total revenue grew from GH¢1.330 billion in 2024 to GH¢3.841 billion in 2025. This represents a remarkable 189% increase. Operating revenue also saw a significant jump, rising 195% from GH¢1.293 billion to GH¢3.809 billion. Net profit increased by 72%, reaching GH¢683.96 million from GH¢398.40 million. Despite these gains, the operating margin fell from 31% to 19% due to higher direct trading costs.
The Institute raised three key questions regarding the new Bill. First, how can BOST manage strategic reserves if funding and stock level decisions rest with other authorities? Second, how can BOST maintain its infrastructure if charges require regulatory approval without clear, cost-reflective methods? Third, how can BOST remain sustainable if competing depots are licensed, drawing away profitable business? These questions highlight the core issues of autonomy and financial viability.
IERPP has made seven specific demands to Parliament. These include withdrawing and fundamentally reviewing the NPA Bill 2026. They also demand clearly defining and protecting BOST's mandate, including its power to sell directly to Oil Marketing Companies (OMCs). The Institute insists that strategic fuel reserves must remain under national control, with BOST as the principal manager. They also call for dedicated funding for reserves and infrastructure, suggesting the BOST margin should support new depots. Furthermore, IERPP advocates for a fair and transparent tariff mechanism. They seek to prevent unfair competition by restricting Bulk Distribution Companies (BDCs) from building inland depots that undermine BOST. Finally, they emphasize that the NPA should remain a regulator, not a market participant. These demands aim to safeguard BOST's operational integrity and financial health.