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Vice President of the Liquefied Petroleum Gas (LPG) Marketers Association, Gabby Kumi, has joined the call for the government to reconsider and, if possible, repeal LPG taxes.
Speaking with Jay Foley on Prime Morning, he explained that the restored Price Stabilisation and Recovery Levy (PSRL) and its attendant increase in the price of LPG will further decrease the commodity’s consumption rate and worsen the plight of the ordinary consumer.
“Any additional increase in the prices of LPG will affect its consumption, the government needs to remove all the taxes on the product to make it more affordable for the ordinary Ghanaian to buy,” he stated.
The price of Liquefied Petroleum Gas will experience a 5 per cent adjustment from Thursday, March 3, 2022. This follows the restoration of the Price Stabilisation and Recovery Levy on fuel products.
The restored PSRL is ¢0.16 pesewas per litre on petrol, ¢0.14 per litre on diesel, and ¢0.14 per kilogram on LPG. It is now ¢9.76 per kilogram, translating to about ¢140 for a 14.5 kg cylinder.
According to him, “once the cost keeps moving up and you have constant taxes and levies, you expect that the price will continue to go up.”
The Vice President said that, in line with the government’s goal of preserving the country’s forests, the best way to persuade people to stop cutting down trees for charcoal and firewood is to make LPG more affordable.
“The people living in the village must eat and if they can’t afford LPG, the best option is for them to cut down the trees for firewood or charcoal,” he lamented.
In the first pricing window, the price moved from ¢7.89 to ¢8.12 in December 2021. In the second window of January 2022, it went up to ¢8.22.
In the first window of February 2022, the price went up to ¢8.60 and went up again in the second window to ¢9.29. Currently, the price stands at ¢9.76.
Commenting on the pricing window, he said if the taxes on LPG persist the retail price is likely to double by the end of the year. The solution is for government to remove all taxes and if possible subsidise the product.