The National Petroleum Authority (NPA) has said the introduction of the GH¢13.5 Cylinder Recovery Margin, which took effect on April 1, 2020, will not increase the product price of Liquefied Petroleum Gas at the pumps as being speculated by the Oil Marketing Companies.
“We wish to state categorically that, contrary to their claim that the introduction of the margin will increase the product price at the pumps and thereby burden the consumer, the facts as they stand do not support that.
The NPA, in a statement issued by its Corporate Affairs and copied to the Ghana News Agency on Saturday, said per it projection for the very pricing window (1st April to 15 April, 2020), consumers are expected to rather enjoy a price reduction of about 11.56 percent even with the introduction of the Cylinder Recovery Margin.
These projections were made before the decision to introduce the Cylinder Recovery Margin, it said.
“We are certainly aware of the difficult situation we all find ourselves at this time and the last thing we will do is to further burden the consumer with additional taxes”.
The statement said under the Cylinder Recirculation Model (CRM), LPG cylinders would be procured, owned, branded and maintained by the Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs).
Also, the LPGMCs and OMCs would assume full responsibility for the safety and maintenance of the cylinders and also be liable for any accident involving their branded cylinders.
The margin, the statement said, would assist the marketers offset some of their financial expenses, in accordance with the full cost recovery principle of petroleum products pricing in Ghana.
“It is unfortunate for the LPGMCs to hold such a position. That notwithstanding, the NPA will continue to engage them on this and other related issues of mutual concern”.
The Authority said it would address the concerns raised by the LPGMCS regarding the tax components in LPG and would communicate a positive outcome in the fullness of time.
“It is the Sole Priority of the NPA that the public interest is served. It is also a responsibility of the NPA that the Safety and Security of the public is not compromised”, the statement said.
It said it is in the interest of the public, the Petroleum Service Providers, motorists and consumers of petroleum products that a model that would secure the safety of the public was developed in order to forestall the past occurrences of gas explosions that the nation has witnessed.
The NPA would like to assure members of the public of its commitment to ensure product availability, affordability and accessibility, while ensuring the safety of the general public and the business viability of players across the value chain.