The African Centre for Energy Policy (ACEP) is calling on the National Petroleum Authority (NPA) and BOST to publish the utilisation of the existing Margins on petroleum products to justify recent increment in margins.
The country’s downstream petroleum regulator, NPA, in a communiqué issued to the Association of Oil Marketing Companies (AOMC) to revise fuel prices, following the passing of Energy Sector Levies Act (ESLA) and Energy Sector Recovery Levy (ESRL), announced increment in BOST Margin, Primary Distribution Margin, UPPF and Fuel Marking Margin.
BOST Margin was reduced from 6 pesewas to 3 pesewas while UPPF was reduced from 30 pesewas to 29 pesewas.
Fuel Marking Margin levy was reduced from 8 pesewas to 5 pesewas with Primary Distribution Margin reduced from 11 pesewas to 10 pesewas.
The above increment pushed fuel prices to GHS 6.13 from GHS5.45 per litre.
That increment was, however, met with criticism, forcing the country’s Minister for Energy, Dr Matthew Opoku Prempeh, to invite officials of NPA, BOST, leadership of Association of Oil Marketing Companies and some civil society organisations in the energy sector to a meeting.
In a communiqué issued after the meeting, the NPA announced that “the 17 pesewas per litre increase in fuel margins it had previously announced had been reduced to 9 pesewas per litre effective Wednesday 5th May, 2021.”
Commenting on the issue, ACEP, in a statement, said the justifications provided are weak and present unnecessary burden on the consumer.
“NPA and BOST should immediately publish the utilisation of the existing margins to show cause for adjustment,” it said.
The statement further called on the NPA to deepen electronic tracking of petroleum product to save the consumer from the ineffective but expensive marking of petroleum products.
The statement also stressed that “NPA must investigate the coincidental adjustment of OMC margins and demonstrate to Ghanaians how it intends to prevent anticompetitive behaviour in the downstream sector.”
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Meanwhile, a statement issued by BOST last week explained that it had efficiently utilised the exiting margin to repair nine (9) out of fifteen (15) decommissioned tanks, settled debts to suppliers and related parties down to $50 million, fully repaired Buipe Bolgatanga Petroleum Product Pipeline, repaired Tema Akosombo Petroleum Product Pipeline, 90% completed Bulk Road Vehicle Truck Park at Bolgatanga, outright settlement of debts owed domestic banks and successfully repaired all petroleum barges.
Source: www.energynewsafrica.com
