The Chamber of Petroleum Consumers, COPEC, is demanding an official publication from the National Petroleum Authority, NPA, notifying Ghanaians of a withdrawal of some levies it placed on Liquefied Petroleum Gas, LPG.
According to COPEC, the NPA on Tuesday directed Oil Marketing Companies to start charging 13.5 pesewas on every kilogram of LPG from the 1st of April 2020. In addition, the NPA has increased the levy on Fuel Marking Margin from 3 pesewas to 4.5 pesewas per litre on every product.
Business News understands that the move is aimed at mitigating the cost that will arise from the Cylinder Re-circulation Model which will aid in distributing LPG to households.
But speaking to Citi Business News, the Executive Director of COPEC, Duncan Amoah, said the NPA has not sought parliamentary approval hence must issue a public notice to withdraw the levies.
“Directing the LPG Marketing Companies to start collecting 13.5 pesewas for every kilogram of LPG purchased and then an additional 1.5 pesewas for marking…what are you charging those monies for?. Have you gone through the right processes? Have you gone to Parliament?,” Mr Amoah queried.
He recalled that a meeting that was held among stakeholders in industry never hinted of new levies and adjustment in some taxes.
Mr. Amoah said he is surprised about the sudden introduction of the levy and a subsequent increase in the fuel marking margin.
“When we met the NPA, we were not told of any charges. We were told that it might be an opportune time to roll out a cylinder re-circulation programme because of a lockdown and Ghanaians are at home and people would have been happy to be supplied the cylinder bottles at home. But Ghana is not going to be on a perpetual lockdown,” he said.
He therefore urged the NPA to publish a notice withdrawing the directive else COPEC may be forced to go to court.
Meanwhile, the Chief Executive Officer of the National Petroleum Authority, Hassan Tampuli, has refuted claims that the new charges are levies, describing them as margins that can be introduced by the regulator without parliamentary approval.
He said on Citi FM’s Eyewitness News that the margins is meant to go to OMCs who will own the cylinders that will be distributed under the Cylinder Re-circulation Model.
Cylinder Re-circulation Model pilot implementation launched in Kade
The National Petroleum Authority, NPA, and the Ministry of Energy, started the pilot implementation of the Cylinder Re-circulation Model at Kade in the Kwaebibirim Municipality of the Eastern Region in March this year.
The Cylinder Re-circulation Model, which is primarily aimed at reducing LPG-related accidents according to government, will also create more jobs contrary to claims by players in the sector that they will lose their jobs.