LPG Marketers Association kicks against NPA’s $80 per metric ton levy on LPG

The Liquified Petroleum Gas (LPG) Marketers Association has once again kicked against the $80 levy per metric ton on LPG that the National Petroleum Authority (NPA) is imposing.

According to the association, it is wrong for the NPA to collect such a levy since the bottling plants would not be able to recoup their investments.

Speaking in an interview, Vice President of the LPG Marketers Association, Gabriel Kumi said “The last thing that broke the camel’s back is this $80 levy that we are talking about and the NPA has come out to explain that is a levy meant for bottling plants – those who want to build bottling plants for cylinder recirculation. We don’t have a problem”.

“If they have invested in the bottling plant and you want to give them a margin, that’s fair but why must that margin be collected by NPA? You have created an account and are asking BDCs [Bulk Oil Distribution Companies] to pay $80 into that account and you explain the margin for the bottling plant”, he said.

“Our argument is that give this margin to the bottling plants to recoup their investments. It’s not for NPA to go and collect this levy into a fund. I don’t think that is the way to go”.

On the need to increase LPG consumption, Mr. Kumi said the only way the country can increase consumption of LPG is to take measures to bring down its pricing “so you can attract a lot more people to use it”.

“We can all help the government achieve its objective but we see government acting contrary to its objective”, he concluded.