NPA directs OMCs to hike UPPF, BOST margin on fuel products

According to a memo dated November 30 and issued to OMCs in the country, NPA explained that the increment of BOST margin in their Price Build Up (PBU) was necessary to ensure that freight rates of transfers to various fuel outlets reflect the current economic conditions.

The development, according to NPA, means the UPPF will be increased by 7 pesewas to 47 pesewas on every litre of petrol and diesel sold at the pumps while the BOST margin has been increased by 2 pesewas.

The same price hike will also impact kerosene, Liquid Petroleum Gas and premix fuel.

Meanwhile, the UPPF is primarily used to cushion the transportation of petroleum products across the country.

It is also implemented to ensure there is an even distribution of petroleum products in all parts of the country irrespective of proximity or location.

See the NPA’s letter to OMCs below:



MA/ESA