ENERGY SECURITY PROPOSAL:
IN THE FACE OF ESCALATING
CRUDE OIL PRICING DUE TO EXTERNAL SHOCKS:
RADIANT MEDIA AND INTELLIGENCE HUB PROPOSES ESTABLISHMENT OF A NATIONAL PETROLEUM RESERVE BUFFER, MANAGED BY THE ENERGY MINISTER-LED COMMITTEE.
THE OBJECTIVE:
To Pump Stock out and Mitigate Pressure on Consumers When Global Prices Spike Above 100 US Dollars.
THE CRISIS IS EXTERNAL, BUT THE PAIN IS LOCAL.
BRIEF
Brent crude has surged to $108.77 per barrelthis week, a 4-month high and 57% above July prices. Physical cargoes in Europe are trading above $130,with North Sea Forties at $136.75, nearing April’s all-time high of $147.37.
CAUSES
The cause is external: US-Iran full-scale war, Saudi Arabia’s East-West Pipeline attack forcing suspension of Yanbu loadings, Libya shutting three oil fields, and Houthis seizing Mocha port threatening Red Sea traffic.
CONSEQUENCES
But the consequence is Ghanaian: pump prices will rise, cedi will face pressure, transport fares will increase, and inflation will rise.
Ghana cannot control the Strait of Hormuz but Ghana can control its buffer.
RADIANT PROPOSAL: NATIONAL PETROLEUM RESERVE BUFFER (NPRB)
Radiant Media and Intelligence Hub proposes the establishment of a National Petroleum Reserve Buffer and a dedicated, auditable strategic stock of refined products that can be pumped into the market to dampen price shocks.
This is not new stock for BOST’s commercial trading. This is sovereign buffer stock held purely for national security and consumer protection.
HOW IT WILL WORK
- Governance: Minister-Led But Not Minister-Controlled.
Establish under the Modern NPA Act, a National Petroleum Reserve Committee (NPRC). to be chaired by:
Minister for Energy and Green Transition
- Vice-Chair: Chief Executive, BOST Energies, technical operator and custodian
- Members: NPA CEO (Regulator/Secretary), Governor of Bank of Ghana Rep, National Security Coordinator, Finance Ministry Rep, Energy Commission, COMAC Rep, Consumer Protection Agency
- Oversight: Reports quarterly to Parliamentary Select Committee on Energy
Decisions to release must be by 2/3 majority, published in gazette within 24 hours, with volumes and price impact stated. This prevents both political abuse and NPA unilateral control.
- What to Store and Where?
- A 60-day national consumption cover: 45 days petrol, 45 days diesel, 30 days LPG , held in BOST’s 6 depots (Accra Plains, Kumasi, Buipe, Bolga, Maame Water, Takoradi) which have total capacity of 760,000 cubic meters or more
- BOST remains custodian and maintains stock quality, but cannot trade buffer stock commercially.
- How to Fund It Without Burdening Consumers
Radiant proposes a blended funding model, not new taxes:
- 30% from BOST Margin ring-fenced portion of existing margin, not new levy
- 40% from Windfall Mechanism: When BOST trading profit exceeds GH¢500m annually (as in 2025 — GH¢683.96m), 10% goes to buffer acquisition
- 20% from ESLA Stabilization portion.
- 10% from Private Sector Participation: CBOD members.
- When to Pump ?
There must be Clear Trigger rules
to avoid political manipulation so that release is automatic when:
- Trigger 1 : when Global Price Triggers and Brent crude 30-day average exceeds $100/barrel
- Trigger 2 : when Pump Price triggers and Ex-pump petrol crosses GH¢15.50 per litre
- Trigger 3: When Supply Disruption Triggers and NPA declares supply disruption due to external shock (Saudi cancellation, Hormuz closure).
So When all these triggers are met, BOST pumps buffer at subsidized ex-depot pric and the difference is absorbed by the Buffer Fund, not by OMCs.
In this situation, Price relief goes directly to consumer, not middlemen.
When Brent falls below $85 for 30 days, buffer is restocked.
- Why BOST Must Remain Strong and Independent.
This proposal only works if BOST is financially strong.
Our position: BOST as custodian, NPA as regulator, Minister-led Committee as decision-maker. BOST’s commercial trading independence must be protected so that it can generate profit to help fund the buffer, as it did with GH¢34.2m dividend in 2025, first in 32 years.
WHAT OTHER COUNTRIES DO
- USA: Strategic Petroleum Reserve — 371 million barrels, President authorizes release
- India: ISPRL — 5.33 million tons, overseen by Oil Ministry
- Kenya: Planning 90-day reserve after 2022 crisis
- Ghana can lead West Africa with 60-day buffer.
IMPACT IF IMPLEMENTED
- When crude jumps from $80 to $130 as now, buffer release can cut pump price increase by GH¢2.00-3.00 per litre for 45-60 days — enough to protect trotro fares, food transport and inflation
- Prevents panic buying and shortages when global supply chokes
- Gives Bank of Ghana breathing space on cedi
- Turns BOST from just a profit-making SOE to a national security asset
CONCLUSION
Ghana cannot stop missiles in Hormuz, but Ghana can stop the full missile hitting the Ghanaian consumer.
The Modern NPA Act, 2026 must not just regulate. It must create a National Petroleum Reserve Buffer, managed by a committee chaired by the Energy Minister, operated by BOST, regulated by NPA, and audited by Parliament.
In a world where physical crude is $130 today and could be $147 tomorrow, sermons will not protect consumers. Buffers will.
