The Liquefied Petroleum Gas (LPG) Marketing Companies Association has condemned the National Petroleum Authority’s (NPA) decision to impose a new LPG tax, which was announced in the most recent pricing structure adjustment that took effect on April 1, 2024.
According to the group, the NPA’s imposition of an extra $80 per metric tonne (MT) as part of the suppliers’ premiums, expressly designated for Bottling Plant and Cylinder Investment Margins, is unjustifiable.
The authority’s new tax reveals an indifference to consumption reduction since 2021, as many businesses in the association are battling to stay afloat, with others on the verge of closure.
“This heartless tax translates to an increase of ₵1.10 on the pump price of LPG, marking a significant 7.5% surge from ₵14.00 to ₵15.10. It is appalling that despite the ongoing challenges faced by LPG marketing companies due to a consistent decline in consumption since 2021, primarily driven by exorbitant pump prices, the NPA is exacerbating the situation with this new tax”, a statement from the association read.
It further stated that “The association deems this new tax as a regressive step that will stifle investment, deter competition, and burden consumers with higher costs, further diminishing accessibility to clean cooking fuel for Ghanaian households.”
The association urged the NPA to reconsider its decision to impose a new tax on the sector and participate in meaningful conversations with industry stakeholders to establish long-term solutions that support growth, affordability, and accessibility in the LPG market.
Source: Energy Ghana