Letters of credit (L/Cs) feature in a new structure aimed at ensuring that vehicles and facilities used by Ghana's armed forces are reliably supplied with fuel.

The structure has been put in place after fuel shortages compromised the capabilities of some of the country's security services.

New arrangement

Ghana Armed Forces (GAF) has entered into an arrangement with state-owned Bulk Oil Supply and Transport (BOST) for the supply of fuel for its activities.

The fuel will come from the national strategic stock, which is managed by BOST, Ghana National Petroleum Corporation (GNPC), and Ghana Oil (GOIL).

Financial structure

Imports for the national strategic stock are financed by GNPC, which issues L/Cs to GOIL.

A subsidiary of GOIL, Gold Energy, then imports petroleum products for storage in BOST-owned tanks.

The national strategic stock currently holds three weeks of fuel, with BOST anticipating that this could be raised to at least four weeks' stock by the end of the year.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.