Remove tax on LPG – Gov’t urged

Remove tax on LPG – Gov’t urged

Participants in a stakeholders Forum held by the National Petroleum Authority(NPA) in Koforidua have called on government to scrab 23% tax levied on Liquefied Petroleum Gas (LPG).

According to them, the current high cost of LPG could affect the Policy objective of the Cylinder Re-circulation Model (CRM) seeking to increase the usage of LPG from current 25% to 50% by 2030.

Currently 75% of Ghanaians use alternate fuel mostly biomass -charcoal and Firewood depleting the environment.

The Chief Executive of the Association of Oil Marketing Companies, Kwaku Agyeman Duah who was at the event held Wednesday September 19, 2019 first expressed grave concern over the high cost of LPG in Ghana adding it is highest among neighboring West African Countries hence called on government to remove the tax build up on the product.

“We want to plead with our government that the tax on LPG it should be remove it so LPG become Cheaper for us. So that we get a lot more to use LPG so as to move from the 25% mark to 50%”.

The Participants concurred that LPG which used to be subsidized has been imposed with tax component making it expensive compared to the use of charcoal which use is being discouraged due to its environmental repercussions.

The CEO of NPA, Hassan Tampuli, assured that, the Authority will table the concerns before government to ensure that price of LPG is reduced and possibly become Cheapest among neighboring West African Countries to encourage many Ghanaians to use the clean energy for both domestic and commercial activities.

The stakeholder engagement is an ongoing exercise by the NPA, to galvanize public support for the CRM policy, educate consumers on the policy and also seek their views which are to be incorporated into a final draft document, before the final rollout.

According to the CEO of NPA, Ghana and Nigeria are the only countries in West Africa yet to implement CRM policy hence the high rate of gas explosion incidents in these two countries which have led to lost of lives and destruction of properties.

He said many countries in West Africa have successfully implemented same Policy.

“We are not talking about the Policy in isolation.This is a policy that is being implemented in Togo,Benin ,Burkina Faso, Cote d’Ivoire , Sierra Leone, Mali, Senegal,Niger almost the entire West Africa Countries”.

He dispelled fear that the policy would lead to job losses adding it would rather creat additional 4000 jobs.

The NPA intends to pilot the cylinder recirculation model (CRM) in Kwaebibirem and Denkyembuor Districts in the Eastern Region and Obuosi in the Ashanti Region in October this year.

The Eastern Regional Minister Eric Kwakye Darfuor on behalf of Chiefs and people assured NPA the full support of of the region for a successful pilot of the Cylinder Recirculation Model in the region.

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