The National Petroleum Authority (NPA) has directed Oil Marketing Companies (OMCs) and other players to increase the Unified Petroleum Price Fund (UPPF) and the Bulk Oil Storage and Transportation (BOST) margins on fuel from today, December 1, 2022.
A letter from the NPA seen by Joy Business instructed the OMCs to increase the UPPF margin from 36 pesewas to 47 pesewas on every liter of petrol and diesel sold at the pumps. In addition, the UPPF for Kerosine, LPG and Premix fuel have all gone up by 11 pesewas.
According to the NPA, the increase is needed to ensure that, freight rates reflect current economic conditions in the country.
The UPPF is used to support the transportation of petroleum products around the country to ensure that price of the product are the same in every part of the country irrespective of the location.
The letter has also asked the various players to also increase the BOST margin by 2 pesewas. The BOST margin for petrol, diesel and kerosene have all gone up by 2 pesewas.
This is the second time this year that NPA has increased the UPPF on the products.
Likely implications
The directive could force some of the OMCs to reverse the more than 5% eduction in prices of petroleum recorded at the pumps recently.
By this, the directive could erode more of the margins of OMCs currently enjoyed.
In addition, some OMCs that have not yet reduce prices, could also be forced to rather increase prices.
Meanwhile the NPA has not yet explained the reasons behind the directive for these margins to be increased.

Latest Stories
- GES, Education Ministry to release academic calendar for SHS
9 mins - Kenyan school shaves off female students’ long hair
10 mins - Assayer in court over $18m gold scam
15 mins - #6thSenseonJoyPrime: Economic situation cause of Ghana’s moral bankruptcy – Angela Bamford
39 mins - Cocoa Abrabopa Association, Alfred Ritter and Ascot to tackle poverty in cocoa growing communities in Ghana
57 mins - Eagles and GATE Africa collaborate to make history with super bowl viewing experience in Africa
1 hour - Pardon Suame NDC Youth Organiser for misspeaking – Sammy Gyamfi tells Police
1 hour - There should be a policy to deploy teachers to rural areas – Deputy General Secretary, GNAT
1 hour - He said just the ‘tip’, but now I’m pregnant; the story of a university fresher
1 hour - MTN FA Cup: Kotoko versus Aduana clash headlines last 16 round
2 hours - CFAO Mobility expands its Mercedes-Benz distribution network in Africa
2 hours - DDEP: The picketing pensioners, their moods and messages
2 hours - Fiscal policy to remain constrained in Ghana due to elevated funding costs – Rand Merchant Bank
2 hours - Principle of Debt Exchange Programme wrong – Economist
3 hours - From Eric’s Diary: Using a tablet on an empty stomach in a desk less classroom
3 hours