NPA to engage Finance Ministry on possible reduction of taxes on LPG

In a strategic move to bolster accessibility and affordability of Liquefied Petroleum Gas (LPG) in Ghana, the National Petroleum Authority (NPA) is spearheading discussions with the Ministry of Finance aimed at tax alleviation measures on this vital energy source.

Mrs. Linda Asante, Deputy Chief Executive of the NPA, highlighted this pivotal initiative at a recent regional town hall in Tamale, underscoring the Authority’s commitment to fostering broader usage of LPG, particularly among women.

According to the Vice President of the LPG Marketers Association, Gabriel Kumi, the burden of taxes on LPG constitute nearly a quarter of the retail price of the fuel, leading to elevated costs for consumers.

He cited the taxes as a significant barrier to achieving the country’s energy ambitions. Despite governmental objectives to increase LPG consumption to 50% by 2030, Ghana has struggled to make significant progress.

With health and environmental imperatives at the forefront, the NPA’s Chief Executive, Dr. Mustapha Abdul-Hamid, underscores the urgent need to mitigate the adverse health effects of traditional cooking fuels, such as charcoal and firewood.

The move, aligned with the government’s ambitious agenda to elevate LPG penetration to 50 percent by 2030, underscores a concerted effort towards sustainable energy transitions.

The introduction of the Cylinder Recirculation Model (CRM) further underscores Ghana’s commitment to revolutionizing LPG distribution channels. This innovative approach, according to Mrs. Asante, is poised to streamline accessibility, minimize costs, and catalyze employment opportunities within the burgeoning LPG sector.

Moreover, the establishment of LPG cylinder bottling plants across strategic locations, coupled with the augmentation of the CRM value chain, epitomizes a multifaceted strategy to invigorate Ghana’s energy landscape.

The active involvement of stakeholders spanning governmental bodies, community leaders, and industry players underscores a collaborative endeavor to drive socioeconomic progress while safeguarding environmental sustainability.

In essence, Ghana’s proactive stance towards LPG accessibility exemplifies a commendable stride towards inclusive economic growth, underpinned by sustainable energy practices.

As the nation navigates towards a cleaner, more resilient energy future, such initiatives resonate as pivotal milestones in Ghana’s journey towards energy sustainability and economic prosperity.

Source: Norvanreports