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The National Petroleum Authority (NPA) has justified the restoration of the Unified Petroleum Price Fund (UPPF) margin on fuel prices. It says this was needed to ensure that transportation of petroleum products to the retail outlet in the country is not affected. Sources tell Joy Business the fund which is used to finance freight costs for the various products has been seriously affected after the application of the margin was frozen from April to June this year. The NPA further argues that if it had not taken the action, the supply of petroleum products to the market could have been badly affected. The restoration of the UPPF will now increase the margin on diesel and petrol to 29 pesewas each respectively. Due to this, petrol price which was expected to come down by almost 8%, has gone up. Prices of petroleum products were expected to witness some mixed reviews at the pump stations from July 2nd, 2022. The price of petrol was expected to go down by almost 8% per liter, whilst a kilogramme of Liquefied Petroleum Gas (LPG) should have done down by over 7%. The price of diesel was expected to have increased by over 3% per liter. However, the reinstatement of the UPPF made it impossible.

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