Oil Marketing Companies (OMC) and other industry players have been directed to increase the Unified Petroleum Price Fund (UPPF) and Bulk Oil Storage and Transportation Company Limited’s (BOST) margin on fuel.

The Unified Petroleum Price Fund Margin is a margin incorporated in the build-up of petroleum prices to compensate transporters who move petroleum products far into the hinterland and other parts of the country, while the BOST Margin is a tax imposed on petroleum products used to cover the maintenance and operating costs of petroleum product depots and undertake expansion programmes at depots.

In a letter dated November 30, the National Petroleum Authority (NPA) instructed OMCs to increase the UPPF margin from 36 pesewas to 47 pesewas on every litre of fuel sold at the pumps.

The reviewed UPPF margin, which was 36 pesewas on petrol and diesel, will now be 47 pesewas each.

Kerosene, LPG, and premix fuel have also gone up by 11 pesewas.

The recent UPPF revision, according to NPA, is to ensure that freight rates reflect the current economic crisis in the country.

The Authority also asked industry players to increase the BOST margin by 2 pesewas, from 9 pesewas to 11 pesewas.

This is the second time this year that the National Petroleum Authority has increased the UPPF.

On July 1, 2022, NPA adjusted the prices of UPPF from 20 pesewas to 29 pesewas for petrol and diesel.

The margin on kerosene and LPG was increased from 21 pesewas and 18 pesewas to 30 pesewas and 27 pesewas, respectively.

This development might force some oil marketing companies to reverse the recent reduction in prices at the pumps.

Prices of fuel products, on November 30, 2022, started seeing some reductions. Diesel was selling at ₵19.77, while petrol went for ₵16.26.

Source: The Independent Ghana