Minority calls for withdrawal of 100% increment in BOST margin

The Ranking Member on the Mines and Energy Committee of Parliament, Adam Mutawakilu, is asking the government to immediately withdraw the increment in the BOST margin announced by the National Petroleum Authority (NPA).

He said the decision to increase the margin amidst the COVID-19 pandemic is unfortunate.

He said the Minority in Parliament is concerned that while the government appears to be granting some reliefs to individuals and businesses due to COVID-19, it has been secretly introducing new levies and taxes that places extra burden on Ghanaians.

“We’ve come to realize as a Minority that while President Nana Akufo-Addo is giving reliefs to Ghanaians, he clandestinely went behind to increase levies, taxes and margins. We call on President Akufo-Addo to as a matter of urgency reverse this 100 percent increase in BOST margin so that Ghanaians who are burdened by COVID-19 will be able to make a good living,” he said.

The National Petroleum Authority (NPA) in a statement over the weekend said the BOST Margin which used to be three pesewas on each litre of petroleum product has been increased by an additional three pesewas.

The regulator in the statement said the increment was approved by Cabinet.

“We write to inform you of a review of the BOST Margin in the Price Build-Up (PBU) of petroleum products effective 1st June 2020. This is in line with a decision taken by Cabinet and communicated to the National Petroleum Authority (NPA) by the Ministry of Energy,” the statement said.

The implication is that Ghanaians from 1st June 2020 started paying more for fuel at the pumps.

The BOST Margin has remained at 3 pesewas per litre since 2011.

In December 2019, it almost went up to 6 pesewas per litre, but the decision was quickly reversed following intense pressure on government by opposition parties as well as CSOs such as the Chamber of Petroleum Consumers (COPEC).

BOST MD appeals for nine pesewas increment

It will be recalled that Managing Director of BOST, Edwin Provencal earlier in March appealed to the government to increase the BOST Margin from three pesewas per litre to nine pesewas.

According to Provencal, the increment will help them maintain the deteriorating facilities at BOST, a strategic asset of the State.

In a Citi Business News interview after a tour of BOST’s Accra Plains Depot at Tema, the MD insisted that the company really needs an immediate injection of funds to enable them protect the country’s strategic asset which plays a very pivotal role in the country’s oil, gas and energy sector.