NPA sets record straight on New LPG Levies.

The National Petroleum Authority, NPA, has introduced new margins and increased existing ones in the Petroleum Price Build-Up.

In a circular, marked “confidential”, which has been cited by the Ghana Talks Business, the NPA directed at the fuel margins have been revised from 3 pesewas to about 4 pesewas per litre.

It has also introduced a Cylinder Investment Margin (CIM) of
13.5 pesewas on LPGs.

Cylinder Re circulation Model policy

This new directive has been met with some criticism. Players
in the industry say the levy will further burden the consumers.

But the NPA is cited in the Daily Guide Newspaper as saying
the introduction of the levies, especially the CIM, is to support LPGMCs/OMCs
ahead of the implementation of the cylinder Recirculation Model (CRM).

The NPA in March this year launched the pilot phase of the
policy in Kade in the Eastern region and Obuasi in the Ashanti Region.

The policy is intended to change the current mode of gas
distribution into a more secured and safe manner.

The policy is to ensure a surge in the usage of LPG from the
current 25% to 50% by 2030.

As part of the CRM policy, the LPGMCs and OMCs will be responsible for the branding, safety and maintenance of the cylinders.

This means that consumers will no longer have to take an
empty cylinder to be filled, they simply have to take their empty cylinders to
an OMC/LPGMC and replace it with a filled one.

There will be different cylinder sizes from 3kg to 14.5kg to
ensure that consumers pay for what they can afford.

A source at the NPA told the same Newspaper that the regulator is determined to support the LPGMCs and Oil Marketing Companies, and has consistently engaged and consulted them on all aspects of the implementation of the energy policy.

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Source : African Media Agency (AMA)