LPG Marketers Intensify Fight For Cylinder Recovery Margin Removal

Marketers of Liquefied Petroleum Gas (LPG) in the country have intensified their dismissal of plans by the National Petroleum Authority (NPA) to secretly introduce a so-called Cylinder Recovery Margin levy that will send LPG prices skyrocketing amidst massive reduction into global petroleum prices.

Vice President of the Association, today told Accra based Joy FM that the new levy is rather distasteful. “At this critical time when the President is out there trying to protect the nation, the only thing our regulator can do at this moment is to increase taxes on a basic commodity like LPG.

“We believe that is in bad taste. We are appealing to NPA to as matter of urgency withdraw the levy they’ve tried to introduce, let’s get back unto the drawing board. We can look elsewhere and find some money. ”

The LPG Association had last week issued a statement warning the NPA to withdraw the cylinder levy with immediate effect.

According to a release by the NPA, when the cylinder recirculation module rolls out, LPG Marketing Companies will assume full responsibility for the safety and maintenance of cylinders.

Under the same module, LPG marketers will also be liable for any accidents involving their branded cylinders.

But the cylinder markets warn that the taxes will just be passed on to consumers, a thing that will discourage the usage of LPG and lead people back to charcoal.

“We have taken a very principled position. We have been hammering this for the past two years that LPG should be made tax-free.”

“We have been appealing to the government to take about 20% tax from the product. So that the product can be more affordable for the ordinary Ghanaian to use because the government has set itself an objective to increase consumption from the current 25 per cent to 50 per cent by the year 2030. But we believe that the strongest enemy against the product is the price.”

Already, he points out, LPG prices in Ghana are among the highest in Africa, and so the new taxes will only worsen the plight of consumers.

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