Remove taxes on LPG to cushion Ghanaians, says petroleum expert
“The government is in a very difficult position, I must say, I think despite that , we could something in my view especially on LPG for cooking and partly because the evidence shows that we have a very strong elastic demand in that sector,”
Dr Theo Acheampong, an international petroleum economist based in the United Kingdom is suggesting government reduce some taxes on Liquified Petroleum Gas(LPG) to cushion Ghanaians.
His call comes amidst the recent hike in oil prices on the world market to $US130 following Russia’s invasion of Ukraine last month.
The development has subsequently led to a 5 percent hike in the prices of LPG just last week.
“The government is in a very difficult position, I must say, I think despite that , we could something in my view especially on LPG for cooking and partly because the evidence shows that we have a very strong elastic demand in that sector,” Acheampong told Kwaku Nyhira-Addo on the Asaase Breakfast Show .
“Anytime you have an external shock to the Ghanaian economy, it brings elastic demand in that sector, so any time you have prices going up , then consumers end up substituting LPG with things like charcoal and other fuels which is not good for their health and neither is that also good for the environment,” he said.
He added “But the issue of diversification is a very funny one, in the sense that we keep talking about these things… but you dont actually see much happening in terms of what it takes to deliver.”
The international petroleum economist says Ghana must take advantage of the ongoing crisis in Ukraine to become self sufficient.
Sources: ghextractives.com
