Adnan Adams Mohammed
As Gold for Oil initiative begins to chalk successes, the Liquefied Petroleum Gas (LPG) Marketers Association of Ghana is making a passionate appeal to government to be considered.
Members of the association, in the wake of persistent price increases, believe this will go a long way to help stabilise and reduce the soaring price of LGP, similar to that of petrol and diesel.
Last week, LPG outlets increased prices of LPG by about 5% per kilogramme. However, Vice President of the LPG Marketers Association alarmed that, if urgent steps are not taken to control the continuous surge in the price of the commodity, government’s efforts of increasing the consumption of LPG will be dashed.
“LPG prices have gone up beginning today [March 1, 2023] and initial indications we are picking from the BDCs [Bulk Oil Distributors] shows that the cost to the Oil Marketing Companies has gone up by about 10% per kilogramme”, Gabriel Kumi revealed. “If we are lucky, competition will bring that one down to about 6% or 7%. But certainly LPG price will go up by not less than 5% beginning today and that will push the pump prices to about ¢16 per kilogramme from the ¢15 per kilogramme it was selling the previous window”.
“Diesel and petrol prices are going down but unfortunately LPG prices keep escalating and that is why our association has called on government to immediately look at including LPG in the ‘Gold for Oil’ deal so that it can also bring the prices down. We believe LPG is a product government must target in this deal because the rate at which LPG prices are going up is unbelievable and this will certainly thwart government’s effort at increasing penetration and usage of LPG in Ghana”, he explained.
Last year 2022, LPG consumption went down by over 12% against that of 2021.
Mr. Kumi said that should be a very big worry to every single Ghanaian and to government.
“Efforts should be made to ensure that this ‘Gold for Oil’ deal, LPG is included immediately because the experts are telling us that LPG prices on the international market will keep escalating even though diesel and petrol prices are coming down. So we appeal to government to immediately include LPG in this deal so it can help stabilise prices”.
He also called for reduction in taxes, saying “we believe this is the best time for government to take off taxes from LPG”.
“So, if we’re able to get LPG included in the Gold for Oil deal, and the taxes are removed, we believe that the prices could come down to a reasonable level so that every Ghanaian can afford”, he added.
Also, the LPG Marketers renewed calls for the government to remove taxes and levies on LPG, which currently stand at about 13%.
The Association also called on government to redirect the dollar auction policy toward the importation and pricing of LPG in the country.
These actions, according to the LPG Marketers Association of Ghana, when implemented, will achieve the desired price reduction impacts.
The Association made this demand in a release issued on March 1 and signed by its Chairman, Mallam Bukari.
According to the group, the price per kilogramme of LPG in Ghana has risen to GH₵16.00, a burden to the many households and businesses that depend on LPG for cooking and other uses.
The LPG Marketers Association of Ghana believes “that the government can do more to alleviate this burden by removing taxes on LPG and redirecting its dollar auction policy towards LPG imports and pricing.”
