Withdraw Cylinder Recovery Levy now – LPG companies to NPA, gov’t

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Liquefied Petroleum Gas (LPG) marketers in Ghana are dismayed following the introduction of the Cylinder Recovery Levy by government.

They are therefore demanding an immediate withdrawal of the levy.
Government, through the National Petroleum Authority (NPA) in a circular to industry players directed them to start charging 13.5 pesewas on each kilogram of LPG from April 1.

This directive will result in an increase in the price of LPG and the Marketing Companies are unhappy with the move.

The chairman of the LPG Marketing Association, Malam Bukari Amadu said members are opposed to the new levy.

“We have been at the forefront of efforts appealing to government to remove all existing taxes on levis from LPG to make the product more affordable to the ordinary Ghanaian consumer.

“It will, therefore, be ironic and indeed highly unprincipled for us to support the introduction of the new levy,” the statement said.

Strong defence

Meanwhile, the NPA has defended the introduction of the new levy. The Authority said the policy is intended to change the current mode of gas distribution into a more secure and safe manner.

The policy is to ensure increase usage of LPG from the current 25% to 50% by 2030. As part of the CRM policy, the LPGMCs and OMCs will be responsible for the branding, safety and maintenance of the cylinders.

Customers will no longer have to take an empty cylinder to be filled, they simply take their empty cylinder to an OMC/LPGMC and pick up a filled cylinder.

There will be different cylinder sizes from 3kg to 14.5kg to ensure that consumers pay for what they can afford.

COPEC to sue NPA

But the Chamber of Petroleum Consumers (COPEC) has threatened legal action against the National Petroleum Authority (NPA) over the introduction of a new levy on Liquefied Petroleum Gas (LPG).

COPEC said the current action of the regulator is disappointing and illegal.

In an interview with Accra-based Joy FM, the Executive Secretary of COPEC, Duncan Amoah said, “this is very interesting, I do think the NPA itself appreciate the illegality that it is actually engaged in currently. For you to introduce any form of levy, there is a legal regime that one must follow.”

“In Act 691 that establishes the NPA, the NPA has no mandate, power within the setup to impose a new levy of such magnitude without recourse to parliament.”

By Jonathan Ofori, Daily Mail GH