Liquified Petroleum Gas (LPG) marketing companies have kicked against the Ghs 0.18 pesewas increment in the price of every one kilogram of gas.
According to the marketing companies, the new move by government will increase the cost of operations as well as burden consumers of the product.
In addition, the price increment will impede government’s own objective of increasing LPG penetration in the country from the present level of 25 percent to 50 percent by 2030.
Speaking to the media, Vice Chairman for the Association of LPG Marketing Companies, Gabby Kumi, noted that government’s objective to increase LPG penetration and the increment in its price do not go hand-in-hand.
He also questioned the sudden increment in the price of LPG given the fact that it was not outlined as part of the new taxes in the 2021 Budget Statement presented to Parliament.
“We believe that government cannot eat its cake and have it. You cannot set a laudable objective to increase LPG penetration from 25 percent to 50 percent and at the same time increase its price through taxation, we believe the two cannot go hand in hand,” he said.
“LPG is a product with an elastic demand and that means that the only way you can increase consumption of the product is to decrease the price and not to increase it. But unfortunately we see government acting contrary to its own objective and we think that is not the way to go,” he added.
