LPG marketers demand withdrawal of cylinder recovery levy

The Liquified Petroleum Gas Marketing Companies Association of Ghana has stated its opposition to the introduction of a new petroleum levy called Cylinder Recovery Levy by the National Petroleum Authority (NPA).

A statement by the association indicated that, the levy, which took effect on April 1, 2020, undermines the work of the association which has been at the forefront of efforts in appealing to government to withdraw all existing taxes and levies from LPG products.

It further explained that it would be unprincipled if they went ahead to support the introduction of a new levy due to the threat the levy posed to the ordinary Ghanaian whose income is already threatened by the partial lockdown in the country. It added that, though NPA needs some funds to aid with the roll out of the CRM policy, the association deems it fit for its regulator to find more innovative ways in raising funds.

“We have rather consistently suggested and insisted that the five Ghana pesewas already being charged as LPG Distribution compensation promotion margin on the price build up should be used to fund the acquisition of new cylinders.

This has been our principled position in all our deliberations with our regulator, the NPA. This assertion can be supported with minutes captured by officials of NPA in our meetings with our regulator,” the Association noted.

See Also:  US$3trn ocean economy gets a local supply chain skills developmental boost

The LPG Marketing Companies Association reiterated its commitment in partnering government to keep money in the pockets of citizenry by reducing prices at the pumps to reflect international prices of crude oil in these difficult times.

The association further called on its regulator to withdraw the new levy and engage industry players on the way forward.

Article Rating
Notify of
Inline Feedbacks
View all comments