Reduction in LPG not due to gold-for-oil policy – LPG Marketers Association

The Liquefied Petroleum Gas (LPG) Marketers Association has stated emphatically that the recent reduction in the price of liquefied petroleum gas has no direct relationship with the gold for oil policy.

The Vice President, Gabriel Kumi, said the gold for oil policy did not include LPG, therefore, cannot be affected.

“We know that LPG price has gone down, beginning today [March 16, 2023], but as we did indicate, it’s not gold for oil policy which is the factor that has brought the price down. You know that LPG has not been added to the products [petroleum] that are being traded for the gold for oil deal.

“LPG has gone down mainly because of three reasons. The cedi has seen some stability over the past two weeks, it has appreciated by 2% and crude oil has gone down by 3% and which has resulted in prices of finished products going down by 7%. These are the factors that have contributed to the prices of LPG going down by about 7% to 8%. If we are lucky, competition can drive this further to 10%,” he was quoted by myjoyonline.com.

The Vice President called on the government to be transparent in the dealings of the gold-for-oil policy.

He dared the government to state how exactly the policy has affected LPG prices by “clearly stating by what percentage” the reduction has been.

Kumi further reiterated calls on for the scrapping of taxes on the product.

“Once you put the tax on it, it goes a long way to affect prices at the pumps. So even though the prices have gone down by 7%, if you add the 13 percent tax, we’re going to see an increase of 20% and that is very huge to see an increase in consumption,” he said.

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