Price of gas to further go up by March 16 – LPG marketers caution

The Price of LPG products is expected to go up again by Wednesday, March 16, according to the Vice-Chairman of the LPG Marketers Association of Ghana, Gabriel Kumi.

He has, therefore, urged government to reduce taxes on LPG products.

According to him, doing so will increase consumption of LPG in Ghana.

He was speaking in an interview with our business news desk.

Price of Liquefied Petroleum Gas (LPG) experienced a 5% adjustment on March 3, 2022 following the restoration of the Price Stabilisation and Recovery Levy (PSRL) on fuel products.

The restored PSRL on petrol is ¢0.16 pesewas per litre, while ¢0.14 per has been restored on a litre diesel and a kilogram of LPG.

In an exclusive interview with Atinka TV‘s business news desk, the Vice-Chairman of the LPG Marketers association of Ghana, Gabriel Kumi stated that this new move has disadvantaged LPG marketers because the 5% adjustment is on the cost price of LPG which is the price at which they buy LPG products and adding other price components like taxes which will invariably affect the price at which they sell to consumers.

He also explained that their projections indicate that by Wednesday the cost at which they buy LPG from BDCs which currently stands at GHC 7.00 will increase to GHC 8.00 and so if they also add their taxes to the price of a kilo of LPG (14.5kg cylinder) which is now selling at GHC 10.00 the price will further increase to GHC 11.00 from Wednesday.

Mr. Kumi added if by Wednesday government doesn’t absorb some of the taxes on LPG or put in some measures to cushion LPG consumers, 14.5kg cylinder which is presently being sold at GHC 145.00 will jump to GHC 160.00 .

He warned that the current situation will result in a decline in LPG consumption as people will resort to the use of charcoal and firewood.

He is therefore urging government to as a matter of urgency remove taxes on LPG.