Energy | National

LPG levy will not hike gas prices – NPA defends new tax

NPA boss, Hassan Tampuli

The National Petroleum Authority (NPA) has said claims that the Cylinder Recovery Margin will cause an increase in the price of Liquefied Petroleum Gas (LPG) are false.

The defence for the new levy is in response to a statement issued by the LPG Marketing Companies Association of Ghana (LPGMCs) which called for the withdrawal of 13.5 pesewas levy.

The NPA said contrary to claims that the introduction of the margin will increase the product price at the pumps and thereby burden the consumer, the facts as they stand do not support that.

“Per our projection for this very pricing window (1st April to 15 April 2020), consumers are expected to enjoy a price reduction of about 11.56 per cent even with the introduction of the Cylinder Recovery Margin. These projections were made before the decision to introduce the Cylinder Recovery Margin,” the NPA said in a press release.

The NPA explains in the release that the levy that was recently introduced in the petroleum price build-up is to assist the oil marketing companies to offset some of their financial expenses and liabilities as they assume full responsibility of the safety and maintenance of the cylinders.

NPA has come under pressure to withdraw the levy that took effect on April 1, 2020.

The Chamber of Petroleum Consumers (COPEC) and the Consumer Protection Agency (CPA) have described the levy as illegal are heading to court to force the NPA to withdraw it.

Read the full release by the NPA below.