The Liquefied Petroleum Gas Marketing Companies are kicking against an 18 pesewas increment on every kilogramme of gas.
According to them, it will increase their cost of operations and overburden consumers.
It will also impede penetration access to LPG, from 25% to 50% by 2030.
The association claims the 18 pesewas increment on a kilogramme of gas was not part of the new taxes and levies in the 2021 Budget.
Vice Chairman of the LPG Marketing Companies Association of Ghana, Gabriel Kumi said “we believe government cannot eat its cake and have it. You cannot set such an illaudable objective of trying to increase access and penetration of LPG from the current 25% to 50% by the year 2030. At the same time, you try to increase the price of the product through taxation.”
“We believe the two cannot go hand in hand. LPG is a product with an elastic demand which means the only way you can encounter growth is to bring down prices so you attract a lot of people into the consumption net so government’s objective can be achieved. But unfortunately we see government acting contrary to its own objective and we think that’s not the way to go”, Mr. Kumi further said.
“As an association, over the past three years, we’ve been calling on government to consider removing the existing – about 2.0% tax on LPG to make it much more affordable to the ordinary Ghanaian”, he emphasised.
The LPG Marketing Association appealed to government to reconsider the decision to introduce the new tax on the kilogramme of gas, since that is the only way that the industry can expand.
“At this stage we’re appealing to government to reconsider the decision to introduce 18 pesewas onto the product [LPG] and withdraw it so that we can save the LPG industry. So, we can encourage more people to use the product…we can save mother Ghana at the end of the day.”
Presently, LPG is being sold in Ghana at GH¢6.30 per kilogramme and is about the highest in West Africa. “In the whole of West Africa, Ghana’s LPG is the highest and that’s why we’re surprised that government would want to go ahead and introduce more taxes on the product to defeat its own objective of trying to increase access and penetration of LPG in Ghana.”