The Liquefied Petroleum Gas (LPG) Marketing Companies Association has strongly condemned the National Petroleum Authority's (NPA) decision to impose a new tax on LPG, as announced in the recent pricing structure revision, effective April 1, 2024.

According to the association, the NPA's imposition of an additional $80 per metric ton (MT) as part of the suppliers’ premiums, specifically allocated for Bottling Plant and Cylinder Investment Margins, is not justifiable.

In a statement, it said, the decision to impose this new tax shows the authority’s disregard for the decline in consumption since 2021.

“This heartless tax translates to an increase of ₵1.10 on the pump price of LPG, marking a significant 7.5% surge from ₵14.00 to ₵15.10. It is appalling that despite the ongoing challenges faced by LPG marketing companies due to a consistent decline in consumption since 2021, primarily driven by exorbitant pump prices, the NPA is exacerbating the situation with this new tax”, the statement said.

The LPG Marketers Association indicated that the new tax will only worsen an already dire situation in the LPG sector.

According to the association, many companies within the association are already struggling to stay afloat, with some on the brink of closure.

“The association deems this new tax as  a regressive step that will stifle investment, deter competition, and burden consumers with higher costs, further diminishing accessibility to clean cooking fuel for Ghanaian households”, it said.

It further said it will fearlessly resist the new tax should the NPA go ahead with its implementation.

The association called on the NPA to reconsider its decision to impose a new tax on the sector and engage in meaningful consultations with industry stakeholders to find sustainable solutions that promote growth, affordability, and accessibility in the LPG market.