Ghana: Gov’t Asked To Reduce Tax Component On LPG To Increase Patronage

The Acting Director for Social and Environmental Impact Assessment at Ghana’s Energy Commission, Eric Ofori Nyarko is urging the Government of Ghana to reduce the 23 percent tax component on the Liquefied Petroleum Gas (LPG) to encourage mass patronage of the commodity in the West African country.

He said the introduction of LPG was to discourage the use of wood fuel but since the price of the commodity continues to increase, many households which were using the product have stopped.

“I would not opt for the abolishing of taxes on LPG. We can reduce the taxes or cross subsidise the taxes, so that at least, we can remove those taxes on LPG and put them onto liquid fuels if possible. So certainly, we need reduction of taxes on LPG to encourage people to use it more,” Ofori Nyarko suggested.

According to him, the Ghana Cylinder Manufacturing Company Ltd. was established to produce the cylinders, gas stoves and associated auxiliaries to reduce cost associated with the use of LPG.

However, he said he sees the lack of proper distribution to bad road areas in the remote villages with infrastructure to store as well as affordable price enable the poor to buy as a setback.

Meanwhile, the objective is to ensure that the country penetrates the use of LPG around to reduce the use of wood-fuel.

“But, unfortunately, we have not been able to balance the cost production of LPG with these issues. Price keeps going high and people who are in the hinterland because of bad roads are not able to get access to LPG to use. Enough facilities are not built over there to allow them to use LPG,” he stated.

Sadly, he said most people are reverting to the use of wood-fuels as a result of the hike in the LPG price.

“So it is not allowing for the policy to achieve its objective of reducing wood-fuel use. Institutions and government that are concerned will take measures to ensure that the price of LPG is reduced and ensure that enough facilities are built in the country for the transportation and storage of LPG.”

There has been calls by members of the LPG Marketers Association for the government to reduce the price of LPG to increase consumption of the product.

The association claims patronage of the product has dwindled because of the high cost of the product.

Speaking to energynewsafrica.com at a training programme organised by Energy Commission for Energy Reporters, Eric Nyarko entreated the government to relook at the current price of LPG in order to increase consumption.

Touching on structures near gas pipelines, Ofori Nyarko urged District, Municipal and Metropolitan Assemblies that grant building permits to intensify public education to prospective occupants near such areas to beware of the consequences.

He said unexpected explosion could result in deaths and loss of properties.

“I will plead with the assemblies, who are the development authorities who give these permits, to ensure that these right of ways of energy infrastructure especially gas pipelines, are respected,” he advised.

Source: www.energynewsafrica.com