Consumption of LPG dips; LPG marketers call for reduction in tax on petroleum product
Consumption of Liquefied Petroleum Gas dipped formed 29,000 metric tonnes in the first half of 2021 to 28,000 metric tonnes in the second half of 2021.
To this end, the LPG Marketers Association of Ghana is appealing to the government to remove some of the taxes in the petroleum price build up to encourage Ghanaians to consume more LPG.
According to the Vice president of the Association, Gabriel Kumi, operators are forecasting a reduction in LPG to about 27,000 metric tonnes as price continues to remain high.
“Consumption in Ghana is on the decline, consumption is very stagnant and has been so for the past one year. We’ve been doing about an average of 28,000 metric tonnes a month.
“And naturally, population is growing so the natural expectation is that as population grows there should be that natural growth, LPG should be growing by at least the same rate as our population.
“But we are not witnessing that, LPG consumption in Ghana is stagnated, if you look at the real figures you will see that consumption is coming down and we think that is not too good for a country that is pushing for consumption to about 50,000 metric tonnes per month.
“Any pesewa increase in the price of LPG goes a long way to reduce the consumption of the product’, he said.
Read: MoMo transaction outstrips cheque transaction by GHS 770.4 billion in 2021
Meanwhile, the National Petroleum Authority (NPA) has indicated its decision to restore the Price Stabilisation and Recovery Levies (PSRL) on petrol, diesel and Liquefied Petroleum Gas (LPG) products effective February 1, 2022.
President Akufo-Addo had directed the National Petroleum Authority to extend the removal of the Price Stabilisation and Recovery Levy on petrol, diesel, and LPG to the end of January, 2022.
“We hereby wish to inform all Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) that effective 1st February, 2022, the PSRLs on petrol, diesel and LPG have been fully restored,” said the NPA in a statement.
The restored PSRL is 16 pesewas per litre on petrol, 14 pesewas per litre on diesel, and 14 pesewas per kilogram on LPG.
According to the NPA, the zeroing of the PSRL cannot be extended any further considering it remains the source of revenue for the payment of the subsidies on Premix Fuel and Residual Fuel Oil (RFO).
Thus an attempt to extend the suspension of PSRL further would “negatively affect the payment of subsidies to the suppliers of these products, and threaten their continuous supply to customers.”
“All Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies (LPGMCs) are to take note of the above and apply them in their PBU accordingly,” the NPA stated.
