By: Franklin ASARE-DONKOH
The National Petroleum Authority (NPA) has ordered all Oil Marketing Companies (OMCs) and other industry players to increase the Unified Petroleum Price Fund (UPPF) and Bulk Oil Storage and Transportation (BOST) margin on Petroleum products effective December 1, 2022.
A memo sent to the OMCs indicated that the firms were all to review the BOST Margin in their Price Build Up (PBU) of Petroleum products effective today December 1, 2022, to the new amount.
The development might force some oil marketing companies to reverse the recent reduction in prices at the pumps.
Based on the letter directing these increases, the UPPF margin is going up by 7 pesewas to 47 pesewas on every liter of petrol and diesel sold at the pumps.
It has also gone up for kerosene, LPG, and premix as well.
According to the NPA, the increase is needed to ensure that freight rates reflect the current conditions in the country.
The Unified Petroleum Price Fund, UPPF, the margin is used to support the transportation of petroleum products around the country to ensure that the price of the product is evenly distributed in every part of the country despite the location.
Per the letter, industry players have also been asked to increase the BOST margin by 2 pesewas.
This is the second time this year that the NPA has increased the UPPF on petroleum products.
Attached is the NPA’s letter;