BOST cuts fuel exports to Burkina Faso and Mali to protect local supply

Ghana's state-owned fuel distributor BOST Energies has halted fuel shipments to neighboring countries Burkina Faso and Mali since August, to focus on meeting domestic demand, Managing Director Afetsi Awoonor explained on Wednesday. Tensions in Ukraine and the Middle East have disrupted global oil and gas supplies, pushing fuel prices to record levels ahead of peak harvest and winter needs.

Mali, Burkina Faso, and Niger rely heavily on fuel imports from coastal countries like Ghana and Ivory Coast. These Sahelian nations are under military rule following military coups and face Islamist insurgencies associated with al Qaeda and Islamic State. In July and August, BOST could only meet half of Burkina Faso's 80,000 metric ton fuel request and provided 10,000 tons to Mali, despite the country seeking an additional 40,000 tons for August and September.

In Ghana, where BOST controls about 30% of the market, diesel demand continues to rise as the economy expands. "Supply is available, but it's at a high cost," Awoonor noted, highlighting that surging demand has strained resources and made it difficult to maintain stable domestic fuel prices. Diesel makes up two-thirds of BOST's supplies.

Earlier this year, Ghana's fuel prices surged due to global supply concerns, but have since stabilized thanks to a stronger currency and government intervention. BOST intends to construct a liquefied petroleum gas (LPG) terminal in the industrial city of Tema by late next year and to begin importing cooking gas. The company also plans to build an LPG storage facility in Kumasi, Ghana's second-largest city, to distribute the fuel, with the aim of establishing terminals at six sites in phases.