The National Petroleum Authority (NPA) has reviewed the prices of Petroleum products upwards by 100 percent.
Starting from June 1, 2020, the cost build-up of petroleum products will double. This then means that consumers of petrol, diesel, Kerosene, premix fuel, among others will pay more when they go to the various outlets to buy any of those products from 1st June.
In a circular dated May 29, 2020 and signed by Alhassan Tamppuli, the Chief Executive Officer of the NPA, the authority says the decision to increase the margins was taken by Cabinet and communicated through the Ministry of Energy.
Per the NPA circular, the Bost margin on Petrol has increased from GHp3.00 to GHp6.00 per litre, while that of diesel has also moved from GHp3.00 to GHp6.00 per litre. However, all other items in the price build-up remained unchanged.
Also, the margin on Kerosene, which used to be GHp3 has also increased to GHp6 per litre. Few months ago, the NPA announced new margins on Liquefied Petroleum products (LPG), increasing it by some GHp3.00 per litre.
The BOST margin constitutes 2.47% of the total price build up (PBU).
This was later redrawn following agitations from the Association of LPG Marketers. The LPG column in the table of containing the new Bost margins, as per the NPA circular, was empty. This could mean that the NPA is still maintaining the old margins in LPG.
These increases are in addition to the earlier trends of increases in the global oil prices and the further depreciation of the Ghanaian Cedi to the Dollar. The price increases on fuel at the next pricing window is expected to be significant.
Attached below is the table containing the new increments.
By Salifu B.B. Moro