OMC's want gov’t to cut taxes on LPG, regulate autogas use

OMC's want gov’t to cut taxes on LPG, regulate autogas use
Source: Maxwell Kudekor | Eastern Region
Date: 19-09-2019 Time: 05:09:45:pm

Chief Executive Officer of the Association of Oil Marketing Company (OMCs) is asking government to remove taxes on Liquified Petroleum Gas (LPG).

Speaking on behalf of the OMCs, Kwaku Agyemang Duah said in many African countries that rely on LPG for domestic and commercial use, their governments have reduced the price of the product to make it more affordable.

He said countries like Nigeria and even Burkina Faso have the cheapest LPG prices despite the fact that Burkina Faso's LPG comes from Ghana.

At a stakeholders’ engagement in Koforidua, Thursday on the Cylinder Recirculation Model (CRM) policy being implemented by the National Petroleum Authority (NPA), Mr Agyemang Duah said government vision of achieving an LPG penetration would not be successful if the prices of LPG remains high.

He said taxes on LPG makes it more costly and unattractive for rural folks, thereby, depending on charcoal and firewood for domestic and commercial purposes.

The OMCs also want the government to regulate the use of autogas, especially among commercial drivers.

CEO of the NPA, Alhassan Tampuli revealed that the LPG penetration in the country is about 25 per cent of the national population adding that the 75 per cent of the population uses charcoal and firewood which has implications on the environment.

He said government wants to achieve a 50 per cent penetration of LPG by the end of the year 2030.

Mr Tampuli said the CRM policy aims to make LPG use safer and more accessible to Ghanaians.

He said, extensive consultation has been done and is still ongoing to ensure that the policy achieves its aims.

Some traditional leaders who participated in the engagement endorsed the Cylinder Recirculation Model. They believe it will create jobs.