Withdraw cylinder recovery levy now – LPG marketing companies tell govt

The Liquefied Petroleum Gas Marketing Companies Association of Ghana has expressed their dissatisfaction over the newly introduced petroleum tax known as the Cylinder Recovery Levy.

The National Petroleum Authority says the introduction of the Cylinder Recovery Levy is to support stakeholders in the supply chain ahead of the implementation of the Cylinder Recirculation Model.

Meaning the levy, when introduced, will increase the Cylinder Recirculation Recovery Margin whereas the Cylinder Recirculation Model serves as a policy intended to change the current mode of gas distribution into a more secure and safe manner.

The new Cylinder Recovery Margin (CRM) will be GHp13.5 per kilogram for LPG.

However, LPG marketing companies, in a press statement described the Cylinder Recirculation Recovery Margin on liquefied petroleum gas as “unfortunate hence the need to withdraw”.

“We therefore call on our regulator, The NPA, to as a matter of urgency, withdraw the new Levy and further engage industry players on the best possible way forward.”

According to the gas marketers “we have been at the forefront of efforts appealing to government to remove all existing taxes and levies from LPG to make the product more affordable to the ordinary Ghanaian consumer. It will therefore be ironic and indeed highly unprincipled for us to support the introduction of a new levy”.

They also indicated that awareness of the NPA being cash strapped to effectively roll out the CRM policy, however, the regulator must be innovative in raising funds to sponsor the policy rather than introducing new levies.

“We have rather consistently suggested and insisted, that the 5 Ghana pesewas already being charged as LPG distribution compensation/promotion margin, on the Price Build Up, should be used to fund the acquisition of New Cylinders. This has been our principled position in all our deliberations with our regulator, the NPA. This assertion can be supported with minutes, captured by officials of NPA, in our meetings with our regulator.

“Our Association, which has been demanding the removal of taxes on the LPG, are ready to partner Government to keep money in the pocket of consumers by reducing the price at the pump to reflect the low crude oil price on the international market in this difficult times, LPG marketing companies noted.