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BOST must justify any increase in its margin on petroleum prices – IES

  • SOURCE: Citi Fm | qwesa2big
  • The Institute for Energy Security (IES), says managers of the country’s petroleum sector could have a stronger case to increase the BOST margin on petroleum products only if BOST accounts for its use of the revenue.

    It follows a withdrawal of the proposed one hundred percent increase in the BOST margin on the prices of petroleum products which was introduced by the National Petroleum Authority (NPA) through a directive to Oil Marketing Companies (OMCs).

    According to the Chamber of Petroleum Consumers, COPEC, which raised the alarm, the controversial BOST margin which currently stands at 3p/litre or some cumulative 10,200,000.00 from consumers was to be increased by 100% to a new rate of 6p/ litre or some cumulative 20,400,000.00 from consumers based on current conservative estimates of some 340 million litres of fuel consumed monthly. The Ynified Petroleum Fund, UPPF component, also increased by 4.7% or 1p from the current 21p/litre to 22p/ litre or some 3,420,000.00 cumulative monthly.

    The Executive Secretary of the COPEC, Duncan Amoah, insisted that allowing the increment to sail through will be a disincentive to consumers who have had to bear the brunt of at least one percent rise in petroleum prices for the first pricing window in December 2019.

    The Executive Director for the IES, Paa Kwesi Anamuah Sakyi in an interview with Citi Business News welcomed the withdrawal.

    “It is a smart decision the government has taken to withdraw the margin and we support that,” he said.

    IES demands accountability from BOST

    Paa Kwesi Anamuah Sakyi intimated to Citi Business News that any further increase would have to be justified by the work of BOST in the use of previous proceeds.

    “If we can be assured; and if there is an evidence of prudent management of the use of these resources then anybody would have supported an upward adjustment of the BOST margin. But as it stands now, you cannot see that and you cannot be assured of any better return out of this BOST margin,” he argued.

    He added that, “So BOST should be able to tell Ghanaians what they have done with what they have at the moment, then we can be sure of what we can do next. For the past three years, BOST has been unable to fully activate their infrastructure, so why build a new one when the one that has been built already is being underutilized?” he quizzed.

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