Liquefied Petroleum Gas (LPG)
The Liquefied Petroleum Gas (LPG) Marketers Association has raised concerns regarding the government's approach to boosting LPG consumption, arguing that ongoing tax implementations could impede this objective.
Their apprehension follows the National Petroleum Authority's (NPA) recent enforcement of a new tax on LPG, integrated into the revised pricing structure effective April 1, 2024.
The Association strongly criticized this action, particularly condemning the introduction of an $80 per metric ton (MT) tax as part of suppliers' premiums, specifically designated for Bottling Plant and Cylinder Investment Margins.
They argued that this levy was unwarranted and indicated the Authority's disregard for the decline in consumption since 2021.
In an interview on Citi FM, Gabriel Kumi, the Association's Vice President, underscored that increasing LPG consumption while introducing more taxes was contradictory, likening it to wanting to "have its cake and eat it too."
He emphasized that such a scenario would discourage people from utilizing the product.
"You can't eat your cake and have it. You can't set such laudable objectives and at the same time keep piling taxes on the product to push away consumers."
"There's no way you can continue piling taxes on the product and at the same time expect to achieve an increment in consumption," he asserted.