About 22% of the price Ghanaians pay per kilogramme for Liquified Petroleum Gas (LPG) is taxes, the LPG Marketers Association has revealed.
According to its Vice President, Gabriel Kumi, this is preventing many Ghanaian consumers from consuming LPG.
“I'm sure you have been following the LPG Marketing Companies Association activities. For the past seven years consistently and persistently we have called on the government to remove the taxes on LPG because we believe it doesn't make any sense to put taxes on LPG”, he stated on Upfront on Joy News.
This is a product countries like Côte d’Ivoire are subsidising to the tune of 20% to 25%. And in fact, when I spoke to a colleague a few weeks ago he couldn't believe LPG is expensive in Ghana. He said their association has written to their government to even increase the subsidies on LPG, while Ghana's LPG currently is one of the highest in the world”, he added.
To him, the government has failed to live by its promises, saying “In 2019 -2020, the government set an objective to increase consumption of LPG from 25% penetration level to 50% by the year 2030 but so far it has failed”.
“We applauded the government and said look this is a laudable objective to set but you can't eat your cake and have it. LPG is a product with a very high sensitivity. It's highly price sensitive such that any pesewa put on the price of the product goes a long way to reduce consumption”, Mr. Kumi mentioned.
“So, when that objective was set, that was when the call for us to take off the taxes on LPG really began because we called the government and said look yes you have set such an objective but it will be counterproductive if at the same time, you are putting taxes on the product which you want to increase its consumption”, he added.
He concluded that LPG is not a luxury product nor is it for the bourgeoisie, but for the ordinary Ghanaians.
Latest Stories
-
Order your appointees to release FX stashed in their homes – Ato Forson to Akufo-Addo
19 mins -
Michael Baidoo scores and assists as Elfsborg thrash AIK
23 mins -
Former Minister recounts being mocked for using old car model after leaving office
43 mins -
Cash Waterfall Mechanism has been designed to benefit IPPs – VRA Senior Staff
45 mins -
Bawumia promises to guarantee regular payment of nurses trainee allowances
1 hour -
We would help Ghana cut down on cable imports – Fenice Founder
1 hour -
Government seeks to transform Ghanaian SMEs into millionaire companies
1 hour -
Visa waivers propel South Africa’s tourism sector with 2.4m visitors
1 hour -
WAFU B U-17 Cup of Nations: It’s too early to celebrate – Laryea Kingston
2 hours -
Africa offers a fertile ground for Fintech startups to grow – Bawumia
2 hours -
Mahama promises joint effort to restore devastated ‘galamsey’ lands
2 hours -
Financial inclusion key to Africa’s development – Deputy Governor of BOG
2 hours -
WAFU B U-17 Cup of Nations: Our game plan worked perfectly – Laryea Kingston
2 hours -
Akufo-Addo government spending money as if there’s no tomorrow – Minority Leader
3 hours -
Two rainstorms heading for Ghana – GMet warns
3 hours