Scrap obsolete 8 pesewas fuel marking margin – Dr. Kwabena Donkor to NPA

Former Minister of Power and Member of Parliament for Pru East, Dr. Kwabena Donkor has called on the National Petroleum Authority (NPA) to scrap the current fuel marking margin of GHp8 per litre charged the consumer saying that it has outlived the purpose for which it was introduced.

Dr. Donkor argued that consumers are being charged for the service in multiples because there is newly implemented system that performs equal functions which is also being paid by consumers.

“NPA has a tracking system that the consumer ultimately pays for. NPA again, now uses electronic tags on every tanker, and you cannot open a compartment without breaking the seal. In those days, we have manual seals which were plastic so each compartment is sealed. So if they bring the product and the seal is tampered with, you know, but these days it is sealed electronically.

We also have the enterprise resource management system, which is a software that enables NPA to approve where each tanker goes, and the consumer is already paying for this. In those days when product marking was introduced, we did not have these other measures.

Therefore, why should we now have to also pay for product marking? All they have done is to add on without looking at the relevance of the previous ones. The fuel marking margin has become obsolete, and so I am calling for the margin of GHp8 on every litre to be removed because it has outlived its usefulness,” he told the B&FT in an exclusive interview.

He further stated that the removal of the fuel marking margin will reduce fuel prices, and consequently bring relief for Ghanaians as prices of products which have increased with the introduction of new taxes and levies will also be affected.

“If it is scrapped, at least the price of fuel will come further down by GHp8 on a litre. If it is not, we are just paying double or triple for the same service. It just means that we are increasingly inefficient, especially now that product prices have gone so high with all the taxes and levies, we should be thinking of efficiency.”

The NPA recently published new increases in some margins in the Price Build-Up of petroleum products to take effect from 1st May, 2021, which included an increase in the fuel marking scheme from GHp3 per litre to GHp8 per litre for all liquid products.

Other amended margins also include the Primary Distribution Margin (PDM), which saw an increment of GHp30 per litre of Petrol, Diesel and Kerosene, the Unified Petroleum Price Fund (UPPF) Margin with GHp3 per litre is added on all liquid products except for Premix fuel, MGO Foreign, Gasoil Mines, Gasoil Rig, plus an addition of GHp3 per kilograms on LPG, while the BOST Margin also recorded an increment of 100% from GHp6 to GHp12 per litre.

However, following public outcry about the increments, NPA has reduced fuel margins by GHp8 per litre, effective Wednesday, 5th May, 2021.

“At a meeting held at the Ministry of Ministry of Energy earlier today between the Minister for Energy and the National Petroleum Authority, the Association of Oil Marketers Companies, Bilk Oil Storage and Transportation Company Limited,, the Chamber of Petroleum Consumers, the Institute of Energy Policies and Research, it has been agreed as follows; the 17 pesewas per litre increase in fuel margins previously announced by the NPA has been reduced to 9 pesewas per litre effective tomorrow, Wednesday 5th May, 2021,” a statement signed by the parties stated.