The LPG Marketing companies Association of Ghana is calling for the scrap of a 23% tax on Liquefied Petroleum Gas in the country.
According to the group, the decision by government to place such a ‘huge’ tax on a product which hitherto was subsidised to encourage higher consumption and patronage is unacceptable.
Members of the association cite an instance where the price of filling a typical 14.5kg LPG cylinder has increased from GHC 45 to about GHC 80 whereas the price of a bag of charcoal remains the same within the same period.
They argue that the policy decision that influenced the introduction of and subsequent push for the utilization of LPG in the stead of wood and other unhealthy fuel alternatives has clearly been breached.
The Cylinder Recirculation Model (CRM) has meanwhile commended government for its decision to ensure more than 50% of Ghanaians have access to safe, clean and environmentally friendly LPG for domestic, commercial and industrial usage by 2030.
The group however have a word of advice for government.
“The only way to achieve this is to create access for new users but unfortunately the new consumers do not have the monetary incentive to abandon their cheaper options,” they said.