The National Petroleum Authority (NPA) has directed Oil Marketing Companies to increase the Bulk Oil Storage and Transport (BOST) margin on petroleum products from three pesewas to six pesewas.
The new directive is expected to take effect on June 1, 2020.
The decision to increase the BOST margin was taken, following a directive from Cabinet which was communicated to the NPA.
In a memo released by NPA, it said all the various petroleum products from Petrol at Kore Mines are expected to apply the new levy of 6 pesewas.
The BOST Margin levy was put in place solely to assist BOST in the maintenance of its facilities. The BOST storage and transportation national infrastructure is the largest in the country. To deliver the BOST mandate, it is forced to run at very high operational costs, unlike its competitors who will site their operations at the most profitable locations.
Edwin Provencal
The Managing Director, Edwin Provencal, in earlier interviews with the media, called on all stakeholders to support the increase of the BOST Margin levy of GH¢0.03 per litre to at least GH¢0.06 to ensure efficient running of the organisation.
“Our non-performing assets stand at almost 35 per cent and adequate resources are needed to turn this situation around for the good people of this country,” he said.
“The current BOST Margin of GH¢0.03 ($0.0183) was implemented in 2011 and has not been adjusted even though the presidential commission in 2017 recommended strongly its upward adjustment to GH¢0.06. We are in 2020 and the levy is still pegged at GH¢0.03 ($0.0050), an erosion of almost 75 per cent of its value due to depreciation and inflation.
“To maintain the same dollar value in 2011, the margin has to be increased to GH¢0.12. Is it right for Ghanaians to expect optimum execution of the BOST mandate with this kind of support?” he lamented.
