Once again, the Liquefied Petroleum Gas (LPG) Marketers Association has expressed opposition to the National Petroleum Authority (NPA)’s imposition of an $80 levy per metric ton on LPG.
The association argues that collecting such a levy is unjustified as it would hinder the ability of bottling plants to recover their investments.
During an appearance on Upfront on Joy News, Gabriel Kumi, Vice President of the LPG Marketers Association, reiterated this stance.
“The last thing that broke the camel’s back is this $80 levy that we are talking about and the NPA has come out to explain that is a levy meant for bottling plants – those who want to build bottling plants for cylinder recirculation. We don’t have a problem”.
“If they have invested in the bottling plant and you want to give them a margin, that’s fair but why must that margin be collected by NPA? You have created an account and are asking BDCs [Bulk Oil Distribution Companies] to pay $80 into that account and you explain the margin for the bottling plant”, he said.
“Our argument is that give this margin to the bottling plants to recoup their investments. It’s not for NPA to go and collect this levy into a fund. I don’t think that is the way to go”.
On the need to increase LPG consumption, Mr. Kumi said the only way the country can increase consumption of LPG is to take measures to bring down its pricing “so you can attract a lot more people to use it”.
“We can all help the government achieve its objective but we see government acting contrary to its objective”, he concluded.