LPG Marketers Association Calls for Tax Relief to Boost Consumption

The LPG Marketers Association in Ghana has shed light on the significant tax burden imposed on Liquified Petroleum Gas (LPG) consumers, revealing that approximately 22% of the price per kilogramme is attributed to taxes. This revelation, according to Gabriel Kumi, Vice President of the association, is hindering many Ghanaians from utilizing LPG as their primary energy source.

In a recent interview on Upfront on Joy News, Kumi emphasized the Association’s persistent advocacy over the past seven years for the removal of taxes on LPG. He argued that taxing LPG contradicts the objective of making clean energy accessible to all Ghanaians.

Kumi highlighted the stark contrast with neighboring countries like Côte d’Ivoire, where LPG is heavily subsidized, making it more affordable for consumers. He cited a conversation with a colleague from Côte d’Ivoire who expressed disbelief at the high cost of LPG in Ghana, noting that their government is actively considering increasing subsidies to further alleviate the financial burden on consumers.

Moreover, Kumi criticized the Ghanaian government for failing to fulfill its pledge to increase LPG consumption from 25% to 50% penetration by 2030. He underscored the importance of addressing the cost sensitivity of LPG, noting that even the slightest increase in price significantly impacts consumption levels.

The Association commended the government for setting ambitious targets but urged policymakers to reconsider the tax structure on LPG to incentivize greater usage. With LPG being a vital source of clean energy, Kumi stressed the urgency of implementing measures to make it more accessible to all Ghanaians.

As the debate over energy affordability and accessibility continues, the LPG Marketers Association remains steadfast in its commitment to advocating for tax relief and policies that promote greater LPG consumption for the benefit of all citizens.