NPA announces new pricing structure for LPG suppliers effective April 1
Parliament has approved the incorporation of a new Bottling Plant and Cylinder Investment Margin into the pricing structure for Liquefied Petroleum Gas (LPG).
Per a statement by the National Petroleum Authority (NPA), the new pricing structure takes effect from April 1st, 2024 as suppliers will see an addition of USD 80.00 per Metric Ton (MT) to the Suppliers’ Premiums, which are used to determine the Ex-Refinery Price of LPG.
This margin is divided into USD 44.00/MT allocated for Bottling Plant Margin and USD 36.00/MT for Cylinder Investment Margin.
The regulatory change, the NPA notes, is sanctioned under the Fees and Charges (Miscellaneous Provisions) Regulations 2023 (L.I. 2481), and aims to ensure sustainability and investment in the LPG sector, while also maintaining competitive pricing for consumers.
All Bulk Import, Distribution, and Export Companies (BIDECs) operating in the LPG supply chain are mandated to adjust their Ex-Refinery Prices accordingly from the stipulated date. Additionally, BIDECs selling LPG will be required to reimburse the specified margin of USD 80.00/MT into a dedicated bank account established for this purpose.
The National Petroleum Authority will administer monthly billing to BIDECs based on the volume of LPG supplied during each month. These bills, denominated in Ghana Cedis, will specify the due amounts and will also provide details of the designated bank account for margin payments, along with the applicable exchange rate for currency conversion.
Industry stakeholders are therefore urged to ensure prompt compliance with the new pricing regime to avoid any regulatory repercussions. The government remains committed to fostering a transparent and competitive LPG market that benefits both suppliers and consumers alike.
