Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA), has rejected claims by the Member of Parliament for Ajumako-Enyan-Esiam Constituency in the Central Region, Cassiel Ato Forson, that it is engaging in some form of illegalities.
The legislator is said to have accused the NPA of acting with impunity by receiving revenues through the collection of unified Petroleum Price Fund (UPPF), Bulk Oil Storage and Distribution (BOST) and Fuel Marketing Margins.
However, reacting to the claims, NPA, in a statement issued by the Corporate Affairs department, stated categorically that it is acting legally contrary to claims by the legislator.
“The NPA wishes to state that its mandate to collect, charge or receive revenue with respect to the UPPF, BOST and Marketing Margins is derived from the NPA ( PPPF), Regulation 2012, LI 2186,” the statement said.
In line with LI 2186, the UPPF, BOST and Marketing Margins are distribution margins and were not just increased in 2021 but have seen periodic increments since 2009 due in part to the increases in the cost of operation of these activities over the years, the statement said.
It further explained that legislation 9 and 13 of the LI 2186 determines how to review the PPPF which states “that the pricing formula must include the three margins and the Authority shall indicate these margins to take care of the intended costs accordingly”.
The UPPF margin is a margin incorporated in the pricing buildup of petroleum products to compensate transporters who move petroleum products from the depots to the retail outlets across the country and to ensure that there is equal pricing of petroleum products in the country irrespective of one’s geographical location.
The BOST Margin is a margin also incorporated into the buildup of petroleum prices used to cover the cost of maintenance and operations of BOST depots across the country and to undertake its support expansion programmes of the depots but this is collected by BOST but not NPA, the statement explained.
The fuel margins are incorporated in the price buildup of petroleum products to pay for the marking of the products to prevent tax revenue loss, smuggling and adulteration of petroleum products.
The statement indicated that It is without a doubt that the absence of these margins in the pricing buildup would have hindered the achievement of the objectives for which the margins were incorporated into the PPPF.
Source: https://energynewsafrica.com