The Liquified Petroleum Gas (LPG) Marketers Association has expressed concerns over the government’s strategy to boost LPG consumption, citing that continuous tax introductions will hinder this goal.
Their statement comes in response to the National Petroleum Authority’s (NPA) recent imposition of a new tax on LPG as part of the revised pricing structure, effective April 1, 2024.
The Association strongly criticised this move, particularly condemning the addition of $80 per metric ton (MT) as part of the suppliers’ premiums, specifically designated for Bottling Plant and Cylinder Investment Margins.
They argued that this imposition was unjustifiable and indicated the Authority’s disregard for the decline in consumption since 2021.
During a Point Blank interview on Eyewitness News on Citi FM, Gabriel Kumi, the Vice President of the Association, emphasised that the government cannot expect to both increase LPG consumption and introduce more taxes, likening it to wanting to “have its cake and eat it too.”
He said that would deter people from consuming the product.
“You can’t eat your cake and have it. You can’t set such laudable objectives and at the same time you 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 stated.