25.4 C
New York
Saturday, August 20, 2022

Latest Posts

Ghana’s Petroleum Authority Allays Fears Over Gas Price Increment

Ghana’s Petroleum Authority Allays Fears Over Gas Price Increment

By Melvin Tarlue

Ghana’s National Petroleum Authority (NPA) has swiftly responded to concerns about a possible increment in the pump price of liquefied petroleum gas (LPG) in the country.

The fears were expressed after the Authority began the implementation of Ghana’s GHp 13.5 Cylinder Recovery Margin.

The LPG Marketing Companies Association of Ghana (LPGMCs) had issued a statement on April 3, 2020, calling for the withdrawal the GHp 13.5.

But the Authority later issued a statement through its Corporate Affairs Department, saying the GHp 13.5p margin would not lead to any price increment.

The new margin took effect on April 1, 2020, amid coronavirus outbreak in the West African nation.

The Authority says contrary to the claim of the marketing companies 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.

It says “ per our projection for this very pricing window (1st April to 15 April, 2020), consumers are expected to enjoy a price reduction of about 11.56 percent even with the introduction of the Cylinder Recovery Margin.”

According to the Authority, “These projections were made before the decision to introduce the Cylinder Recovery Margin.
It is important to state that under the Cylinder Recirculation Model (CRM), LPG cylinders will be procured, owned, branded and maintained by the Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs).”

It says the LPGMCs and OMCs will assume full responsibility of the safety and maintenance of the cylinders, and also be liable for any accident involving their branded cylinders, it stated.

“The margin is therefore to assist the marketers offset some of their financial expenses, in accordance with the full cost recovery principle of petroleum products pricing in Ghana,” the Authority explained.

“It is therefore 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,” according to the statement.

Latest Posts


Don't Miss

Stay in touch

To be updated with all the latest news, offers and special announcements.