LPG Marketing Companies oppose GHS 1,040 per metric tonne tax by NPA
The Liquefied Petroleum Gas (LPG) Marketing Companies Association has strongly opposed the National Petroleum Authority’s (NPA) decision to impose a new tax on LPG effective April 1, 2024.
The NPA has introduced an additional $80 (GHS 1,040) per metric ton (MT) tax as part of the suppliers’ premiums, designated for Bottling Plant and Cylinder Investment Margins.
The Association, however, argues that this new tax is unwarranted, especially considering the decline in LPG consumption since 2021. They assert that the new tax will result in an increase of GHS 1.10 on the pump price of LPG, representing a significant 7.5% rise from GHS 14.00 to GHS 15.10.
The Association given the new the tax by the NPA, has expressed its disappointment with the regulator’s decision, particularly in light of the challenges faced by LPG marketing companies due to declining consumption and high pump prices.
They believe that the new tax will exacerbate the difficulties already faced by the LPG sector, potentially leading to the closure of some companies.
Furthermore, the association views the new tax as regressive, hindering investment, discouraging competition, and imposing higher costs on consumers. This, they argue, will reduce accessibility to clean cooking fuel for Ghanaian households.
The Association has therefore declared its intention to vehemently oppose the new tax and called on the NPA to reconsider its implementation urging the NPA to engage in meaningful consultations with industry stakeholders to identify sustainable solutions that promote growth, affordability, and accessibility in the LPG market.
