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    Withdraw The Increased Margins On Fuel Price Build - Up

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    Fuaad Dodoo
    The Institute for Energy Security has expressed concern over recent increases to margins in Ghana's petroleum product price build-up. Several margins including the BOST margin, primary distribution margin, fuel marking margin, and unified petroleum price fund margin saw increases of up to 167%. The IES argues these increases place an unnecessary burden on Ghanaians still suffering economic effects of the pandemic. They find no justification for the increases and call on the government and NPA to immediately withdraw the increased margins to alleviate costs for citizens.

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    Withdraw The Increased Margins On Fuel Price Build - Up

    Uploaded by

    Fuaad Dodoo
    108 views2 pages
    The Institute for Energy Security has expressed concern over recent increases to margins in Ghana's petroleum product price build-up. Several margins including the BOST margin, primary distribution margin, fuel marking margin, and unified petroleum price fund margin saw increases of up to 167%. The IES argues these increases place an unnecessary burden on Ghanaians still suffering economic effects of the pandemic. They find no justification for the increases and call on the government and NPA to immediately withdraw the increased margins to alleviate costs for citizens.

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    Withdraw the Increased Margins on Fuel Price Build -Up

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    Withdraw the Increased Margins on Fuel Price Build -Up

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    The Institute for Energy Security has expressed concern over recent increases to margins in Ghana's petroleum product price build-up. Several margins including the BOST margin, primary distribution margin, fuel marking margin, and unified petroleum price fund margin saw increases of up to 167%. The IES argues these increases place an unnecessary burden on Ghanaians still suffering economic effects of the pandemic. They find no justification for the increases and call on the government and NPA to immediately withdraw the increased margins to alleviate costs for citizens.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    108 views2 pages

    Withdraw The Increased Margins On Fuel Price Build - Up

    Uploaded by

    Fuaad Dodoo
    The Institute for Energy Security has expressed concern over recent increases to margins in Ghana's petroleum product price build-up. Several margins including the BOST margin, primary distribution margin, fuel marking margin, and unified petroleum price fund margin saw increases of up to 167%. The IES argues these increases place an unnecessary burden on Ghanaians still suffering economic effects of the pandemic. They find no justification for the increases and call on the government and NPA to immediately withdraw the increased margins to alleviate costs for citizens.

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    INSTITUTE FOR ENERGY SECURITY

    Dr. Tagoe Avenue,


    Ambassadorial Enclave
    East-Legon, Ghana.

    GOVERNMENT MUST WITHDRAW THE INCREASED MARGINS ON PETROLEUM PRODUCTS

    The Institute for Energy Security (IES) has noted with great concern the new increases in
    some margins in the Price Build-Up (PBU) of petroleum products effective 1st May 2021.
    The amended margins were made available to the various Petroleum Service Providers
    (PSPs) on the 29th of April 2021, and at the end of the April 2021 second Pricing-window.

    The amended margins include the BOST Margin, the Primary Distribution Margin (PDM),
    Fuel Marking Margin (FMM) and the Unified Petroleum Price Fund (UPPF) Margin.

    For the UPPF Margin, GHp3 per litre is added on all liquid products except for Premix fuel,
    MGO Foreign, Gasoil Mines, Gasoil Rig, plus an addition of GHp3 per kilograms on LPG.
    The PDM has also been increased to GHp11 per litre of Petrol, Diesel and Kerosene. The
    Fuel Marking Scheme has seen an increment of up to 167% from GHp3.00 per litre to
    GHp8.00 per litre for all liquid products. The BOST Margin has also recorded an increment
    of 100% from GHp6 to GHp12 per litre. This new increase for BOST is coming on the back
    of an initial 100% increase, from GHp3 to GHp6 per litre barely eleven (11) months ago.

    These amendments in margins comes to add to the introduction of the Sanitation and
    Pollution Levy (SPL) of GHp10 per litre of product, and the addition of GHp20 per litre on
    the Energy Sector Recovery Levy (ESRL).

    The IES finds these new amendments in the various Margins as nuisance and insensitive
    to the Ghanaian petroleum consumer, particularly as the impact of the Covid-19
    pandemic is still felt by the majority of Ghanaians. The consumer is already burdened with
    several taxes, in the face of job losses, salary cuts, and collapse of businesses et cetera;
    following the pandemic. It is therefore inappropriate for government to lay more burdens
    on Ghanaians through the amendments in fuel margins.

    The IES finds no justification for the increases in these Margins. For instance, the BOST
    Margin and the PDM goes to BOST, yet BOST has not been able to even properly justify
    the GHp3 per litre increase given it last year. The company is still under performing, as it
    was the year before. Not much has changed.

    It must be noted that the continuous increases in levies, taxes and margins on petroleum
    products is one of the key reasons for Oil Marketing Companies (OMCs) deciding to
    evade tax payments, and rather smuggle their products, just to maximize their market
    share. This eventually leave the very few tax compliant OMCs to suffer.
    INSTITUTE FOR ENERGY SECURITY
    Dr. Tagoe Avenue,
    Ambassadorial Enclave
    East-Legon, Ghana.

    This action by government, through the National Petroleum Authority can best be
    described miscalculated, insensitive, careless and inconsiderate, looking at the times the
    country is going through.

    IES is therefore calling on the government and NPA to immediately withdraw the
    increased levies on the UPPF Margin, PDM, FMM and the BOST Margin, to alleviate the
    burden on the ordinary Ghanaian citizen. It must be stated that there is no justification
    for these increase, and of course, counter-productive.

    SIGNED

    Nana Amoasi VII

    Executive Director

    Institute for Energy Security, IES

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