The National Petroleum Authority (NPA) has reversed with immediate effect, its earlier decision to increase the Bulk Oil Storage and Transport (BOST) margin on petroleum products by 100 per cent.
The communication to reverse the decision was contained in a Memo to the Oil Marketing Companies on Monday.
The BOST margin which was expected to have been increased by from GH¢0.03 to GH¢0.06 per litre and the UPPF component also get increased by GH¢0.01 to GH¢0.22 per litter.
Speaking to JoyBusiness, the Chief Executive of the Association of Oil Marketing Companies (OMCs), Kweku Aygemen Duah, said “It’s basically the BOST margins that have been reversed. Normally it is something we do, it’s a practice but NPA by virtue of being the regulator has got authority on margins.”
He added “Basically what it means is that we’re not going to apply the 3 pesewas that is supposed to apply for BOST margins and it will ensure that price buildup that not go up. It is fine with us”
Several Civil Society Organisations including the Chamber of Petroleum Consumers-Ghana (COPEC) have come out to condemn the decision to increase the BOST margin.
According to COPEC, the directive will further increase the price of petroleum products.
“This move by the NPA to slap additional levies on fuel prices at this critical point of Christmas makes a complete nonsense of the efforts by the Finance Ministry and the BOG to intervene to ensure availability of dollars at this time for petroleum importation with the view to forestalling any further increases on already neck-breaking fuel prices in the country.”
Per the directive which is expected to take effect on Monday, 16/12/2019, all Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPG-MCs) are to apply an upward review of a combined GH¢0.04 increase to Ghanaian pump prices.
Per the directive, the controversial BOST margin which currently stands at 3p/litre or some cumulative 10,200,000.00 from consumers is to be increased by 100% to a new rate of 6p/ litre or some cumulative 20,400,000.00 from consumers based on current conservative estimates of some 340 million litres of fuel consumed monthly, the UPPF component also gets increased by 4.7% or 1p from the current 21p/litre to 22p/ litre or some 3,420,000.00 cumulative monthly.
Fuel prices across pumps within the country went up by some 1% just last week following from days of a sharp depreciation of the cedi and is believed could go up further in the next window starting tomorrow as the cedi continues to depreciate.