Gov’t withdraws controversial 13p LPG levy

The government has cancelled the Cylinder Recovery Margin (CRM) levy of 13.5 pesewas for each kilogramme of Liquefied Petroleum Gas (LPG) imposed by the National Petroleum Authority (NPA).

The Energy Minister, John Peter Amewu, disclosed that the levy had to be suspended due to some irregularities.

Legal suit looms over fresh increase in taxes on LPG

“That slight increase in price that you saw in the papers, it has been withdrawn,” he said on Thursday, April 16.

He explained that “there was a bit of an error” during the implementation and government would address the concerns.

NPA imposed the levy which kicked into effect on April 1, 2020, but the Chamber of Petroleum Consumers and the Consumer Protection Agency sued the National Petroleum Authority (NPA) citing the failure to consult service providers before the introduction of the new petroleum pricing formula.

The LPG Marketing Companies Association of Ghana (LPGMCs) also called for the cancellation of the levy.

Mr Amewu stressed: “I can assure you that it has been withdrawn.”

He said the government would review the bill and announce the new arrangements to the public afterwards.

The CRM was to support stakeholders in the supply chain ahead of the implementation of the Cylinder Recirculation Model.

The government introduced a National LPG Promotion Policy of which the Cylinder Re-circulation Model was a component.

The policy was to improve marketing and distribution of LPG in a safe and efficient manner, so as to facilitate an increase in access to LPG nationwide.

1 Comment
  1. Awula Serwah says

    It’s good to have a government that is prepared to listen. Eco-Conscious Citizens hope the Government will listen to concerns and remove Atewa Forest Reserve from the Sinohydro contract. We cannot afford to risk polluting the source of water to over 5 million people. There are green alternatives to bauxite mining. Stay safe.

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