Energy | National

Government withdraws imposition of LPG Cylinder Recovery Levy

Government has withdrawn the 13.5 pesewas Cylinder Recovery Levy imposed by the National Petroleum Authority (NPA) on liquefied petroleum gas (LPG) with immediate effect.

The NPA on Wednesday, April 1, 2020 directed liquefied petroleum gas marketing companies and industry players to charge 13.5 pesewas on each kilogramme of LPG.

The Authority, in a statement, said the introduction of the levy was intended to support stakeholders in the LPG supply chain ahead of the implementation of the Cylinder Recirculation Module.

The move incurred the anger of the LPG Marketing Companies Association of Ghana and called for the withdrawal of the levy since the COVID-19 pandemic has adversely affected businesses.

The LPG marketing companies asked the NPA to find innovative ways to generate revenue instead of imposing new levies.

But the Energy Minister, John Peter Amewu while answering a question on the matter at a media briefing on Covid-19 in Accra Thursday announced the withdrawal of the LPG levy.

He said the LPG Cylinder Recovery Levy was a proposal under the Cylinder Recirculation Module, explaining that, since that policy was yet to be rolled out, the levy should be withdrawn for now.

Meanwhile, the Energy Minister provided further explanations on the electricity relief package provided by the government for all Ghanaians, starting from April, May and June.

He said it would cost the nation one billion Ghana cedis equivalent, with 4.8 million electricity metres expected to benefit nationwide.