The National Petroleum Authority (NPA) has directed Oil Marketing Companies and other industry players to increase the Unified Petroleum Price Fund (UPPF) and Bost margin on fuel effective December 1.
A November 30 memo sent to the Oil Marketing Companies indicated that the firms were all to review the BOST Margin in their Price Build Up (PBU) of Petroleum products effective today, to the new amount.
The development might force some oil marketing companies to reverse the recent reduction in prices at the pumps.
Based on the letter directing these increases, the UPPF margin is going up by 7 pesewas to 47 pesewas on every litre of petrol and diesel sold at the pumps.
It has also gone up for kerosene, LPG, and premix as well.
According to the National Petroleum Authority, NPA, the increase is needed to ensure that freight rates reflect the current conditions in the country.
The Unified Petroleum Price Fund, UPPF, margin is used to support the transportation of petroleum products around the country to ensure that price of the product evenly distributed in every part of the country despite the location.
Per the letter, industry players have also been asked to increase the BOST margin by 2 pesewas.
This is the second time this year that the National Petroleum Authority has increased the Unified Petroleum Price Fund on petroleum products.