The Liquified Petroleum Gas Marketing Companies Association of Ghana has voiced staunch opposition to the recent imposition of an $80 per metric ton tax on Liquefied Petroleum Gas (LPG).

The letter, penned by Malam Bukari Amadu, the Association's Chairman and addressed to the National Petroleum Authority(NPA), condemns what it deems as the NPA's abuse of regulatory loopholes.

The letter said, "The Fees & Charges (Miscellaneous Provisions) Regulations 2023 (LI2481) are being seriously abused by the NPA," highlighting concerns that this abuse allows for the arbitrary introduction of high levies and taxes, such as the newly imposed $80/metric ton tax effective April 1st, 2024.

Furthermore, the Association criticises the replacement of the Price Stabilisation and Recovery Levy (PSRL) with the $80 per metric ton tax.

It stated, "The continuous imposition of taxes on LPG contradicts government objectives and has stalled growth in the sector."

The letter also questions the fairness of burdening consumers with taxes that indirectly benefit private investments.

"This tax hike not only burdens consumers but also indirectly subsidises private investments with taxes of the poor Ghanaian, which should be addressed through fair competition rather than regulatory favouritism."

Amidst these concerns, the Association raises important queries regarding the administration and duration of these taxes.

"How long is the poor consumer going to pay these taxes? How much do we intend to accumulate? Which body is responsible for administering these funds?"

The LPG marketers are therefore urging the NPA to reconsider and withdraw the tax, warning of dire consequences for the LPG downstream industry and the Ghanaian consumer.