Fuel prices to go up today

Consumers of petroleum products should be prepared to pay more for fuel at the pumps beginning today, June 1, 2020. This follows an increment in the BOST Margin by Cabinet which was announced by the National Petroleum Authority (NPA) over the weekend.

The BOST Margin has been increased from 3 pesewas to 6 pesewas for a litre of petroleum product. Meanwhile, the Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah says fuel prices at the pumps will go up by between five and eight percent.

“Consumers will most likely have to pay more for fuel because world market prices, crude alone has done about 40%. With finished products such as gasoline, gas oil has also seen a sharp jump on the international market. It is quite certain that we will be doing between 5% and 8% [increase in fuel prices],” he said in an interview.

Background 

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.

Meanwhile, Executive Secretary of the Chamber of Petroleum Consumers, Duncan Amoah says apart from the increment in the BOST Margin, recent increment on the world market will also result in an 8 percent rise in prices at the pump.