The Liquified Petroleum Gas Marketing Companies Association of Ghana has opposed the introduction of the new petroleum levy, the Cylinder Recovery Levy, by the National Petroleum Authority (NPA).

It is, therefore, calling on the regulator, NPA, to, as a matter of urgency, withdraw the new levy and further engage industry players on the best way forward.

The levy came into effect on Wednesday, April 1, 2020.

The association, in a statement, said it has appealed to the government to remove all existing taxes and levies from LPG to make the product more affordable to the ordinary Ghanaian consumer.

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

Further, it said the plight of the ordinary Ghanaian whose source of income is threatened due to the partial lockdown which has affected a lot of businesses, will be worsened if the levy is allowed to stay.

“We know the NPA needs money to effectively roll out the CRM policy, but we are resolute in our conviction that our regulator must find more innovative means to raise the needed revenue. Unfortunately, adding more levies to the already over-taxed LPG consumer is not the way to go in our humble opinion”, it added.

“We have rather, consistently, suggested and insisted that the 5 Ghana pesewas already being charged as LPG Distribution Compensation/ Promotion Margin on the Price Build-Up, should be used to fund the acquisition of new cylinders. This has been our principled position in all our deliberations with our regulator, the NPA. This assertion can be supported with minutes captured by officials of NPA, in our meetings with the regulator”, it explained.

The association further said it is ready to partner the government to keep money in the pocket of consumers by reducing the price at the pump to reflect the low crude oil price on the international market.

“We shall continue to remain very civil and matured in our discourse, devoid of personal attacks, in our quest to find a lasting solution to this very important issue which will shape future of the LPG industry in our country.”