The National Petroleum Authority, NPA has reacted to calls by COPEC to withdraw the new LPG levy.
COPEC has threatened to drag the NPA to court over the introduction of a new levy on LPG.
NPA in circular to industry players directed them to start charging 13.5 pesewas on each kilogram of LPG from April 1. This will result in an increase in the fuel margins from 3 to 4.5 pesewas per litre.
But COPEC has called for the immediate withdrawal of the levy.
Chief Executive for COPEC, Duncan Amoah said the levy introduced by NPA has revealed their insensitivity during this period of Covid-19.
According to him, Ghanaians cannot pay for a programme that did not benefit them.
“We have all kept quiet over the period because they come to add and subtract nobody complains so it looks like though now the NPA has taken over the functions of the Finance Ministry, you wake up one morning and they have added things for the public to go and pay. It is difficult to accept at this point how a pilot programme is now going to be paid for by every Ghanaian consumer as though we are all benefiting or enjoying that service, the NPA will need to remove that Cynlider Recirculation margin immediately because it is illegal and lawless and the shows their insensitivity at the time when the President and his team are doing everything possible to fight the Covid-19 and give Ghanaians some relief.”
Reacting to the call by COPEC, Chief Executive Officer of the NPA, Hassan Tampuli in a radio interview said the news charges are not levies but rather margins that can be introduced without parliamentary approval.
He explained that these margins are always based on the discretion of the marketing companies with the formula being used.
“Taxes and levies are matters that we put before parliament but issues of margins which are taken care of by others…Marketing Companies have their own margins and they move the margins as and when the market forces call for it. The BDCs also have the same thing, we have UPPF margins those ones are not sent to parliament for review, they are left to the discretion with the formula under the automatic… we have under the full cost recovery mechanism.
Hassan Tampuli said the margins will take care of the new expenditures of the companies under the model.
So if you are bringing in cylinders under the Cylinder Recirculation Model and the LPG marketing companies are expected to procure, brand and maintain the cylinders, now there is a need to have margins in the price buildup that can accommodate this new expenditure