Players in the energy sector have welcomed the decision by the National Petroleum Authority (NPA) to increase the Bost Margin in the price component on petroleum products.
Over the weekend, the NPA through a letter signed by its Chief Executive Officer, Alhassan Tampuli, announced that it has reviewed upwards the Bost Margin in the Price bulid-up (PBU) of petroleum products by 100%.
ALSO READ: NPA increases Bost margin on Petroleum Products by 100% – Effective 1st June
According to the NPA, the decision was taken by Cabinet and communicated through the Ministry of Energy.
Effective June 1, 2020, the cost build-up of petroleum products will double, per the Cabinet directive.
Also, according to the NPA letter, the Bost margin on Petrol has increased from GHp3.00 to GHp6.00 while that of diesel has also moved from GHp3.00 to GHp6.00.
Similarly, the margin on Kerosene, which was GHp3 has also increased to GHp6.
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.
The Increment, Ghana Talks Business has gathered, is to help raise some monies for Bost to invest into its operations.
The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, while welcoming the increment, says there is a legitimate need for the Bost to be supported with the needed investment to make it more efficient.
“Indeed, they do have a genuine need for institutional investment and this, I do think Ghanaians would probably understand”, Mr Amoah said in an interview with Joy News’ ‘Market Place” programme.
He added that “we have been made aware that Bost currently is in dire need of some investments, and some capital injections in order that they bring their operations up to some optimal efficiency point”.
Aside from this, Mr Amoah added that their checks indicated that Bost indeed needed financial support to enable it perform its duties better.
However, he says, in the coming days and months, COPEC will be monitoring events to see if Bost is truly applying the revenues generated from the latest increments for its intended purpose.
Institute of Energy Security
An Analyst with the Institute of Energy Security (IES), Raymond Nuworkpor, says his outfit has always believed in Bost having the necessary investment to help them continue keeping Ghana’s strategic reserves.
In that regard, he says, if the GHp 3.00 increment will help Bost to effectively carry out its duties, then IES fully supports it.
“If the needed investment are supposed to increase their operations and help them become effective then three pesewas will be a good idea”, he also said on the same show.
“The oil industry is a margin business and so three pesewas is significant if you look at the multiple effect”, Mr Nuworkpor added while responding to questions on whether the increment is enough to help Bost improve its efficiency.
On the issue of timing of the increment, both COPEC and IES said there would not a right or wrong timing in this regard, considering the Bost’s current circumstance.
By Salifu B.B. Moro