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Reconsider increase in gas prices – LPG marketers to Government

Mon, 12 Apr 2021 Source: kasapafmonline.com

The Liquefied Petroleum Gas (LPG), Marketers Companies Association of Ghana wants the government to reconsider the announced 18 pesewas upward adjustment on a kilogram of LPG.

The association in a Press Statement said the increase in tax is completely misconceived and inappropriate for various reasons urging the government to halt the implementation of the new law and take immediate steps to amend it removing the LPG component.

“we the LIQUIFIED PETROLEUM GAS MARKETING COMPANIES ASSOCIATION OF GHANA note with utmost dismay the ‘Necodemus’ introduction of Ghp 18 per Kilogram of LPG in the recently passed Energy Sector Levies (Amendment) Act 2021, ACT 1064.

“This increase in tax on LPG came as a very unpleasant surprise to Ghanaians in general, and the LPG industry in particular as it was communicated in paragraph 260 in the 2021 budget that the proposed energy sector recovery levy will only affect Petrol and Diesel.

“Cumulatively LPG prices have seen an increase of about 20% from October 2020 to March 2021 and any further increase will worsen the plight of Ghanaians already suffering from the precarious impact of covid-19.”

Currently, LPG is being sold at GHS 6.30 per kilo which the marketers say was “about the highest in West Africa.”

Below is the full statement:

STATEMENT ON THE HIKE IN TAXES ON LIQUIFIED PETROLEUM GAS(LPG)

we the LIQUIFIED PETROLEUM GAS MARKETING COMPANIES ASSOCIATION OF GHANA note with utmost dismay the ‘Necodemus’ introduction of Ghp 18 per Kilogram of LPG in the recently passed Energy Sector Levies (Amendment) Act 2021, ACT 1064.

This increase in tax on LPG came as a very unpleasant surprise to Ghanaians in general, and the LPG industry in particular as it was communicated in paragraph 260 in the 2021 budget that the proposed energy sector recovery levy will only affect Petrol and Diesel.

We are convinced the increase in tax is completely misconceived and inapropriate for the following reasons:

1. It sharply contradicts your much-touted vision and current drive to help the poor and alleviate poverty.

2.It is embarrassing that most of the countries in the sub-region still subsidize LPG yet the Black Star of Africa, our dear nation, continues to pile taxes on the product which will further worsen the already sorry state of the poor population of our country.

3.It also contradicts government’s policy to increase penetration of LPG to 50% by the year 2030 fron the current 25% penetration levels. We are very resolute in our conviction, that this noble objective cannot be achieved if we do not take concrete and pragmatic steps, to reduce the price of LPG so the ordinary Ghanaian can afford it.

4. Currently, consumption of LPG is already trending dangerously downwards at an alarming rate. From 35,000 metric tonnes in November 2020, LPG consumption declined to 29,000 metric tonnes in December 2020. It further declined to 28,000 metric tonnes in January 2021 and plummeted to 26,000 metric tonnes in February 2021. A situation which does not only defeat the purpose for the introduction of LPG but also puts jobs at serious risk.

5. Cumulatively LPG prices have seen an increase of about 20% from October 2020 to March 2021 and any further increase will worsen the plight of Ghanaians already suffering from the precarious impact of covid-19.

We therefore call on government, to as a matter of urgency, HALT the implementation of the new law and TAKE IMMEDIATE STEPS to AMEND it removing the LPG component.

It is our hope that this request will be given the needed positive consideration to help save our Forest, our environment, our Rivers, the next generation and above all to save the LPG industry in Ghana from eminent collapse.

LPG CONSUMPTION IN GHANA IS DECLINING BCOS OF HIGH PRICES .

Yours, For GOD and our COUNTRY

SIGNED

Malam Bukari Amadu

Chairman

For interviews contact: Gabriel Kumi on 0246782125

Source: kasapafmonline.com