LPG price to go up by 5% on March 3, 2022.

From March 3, 2022, the price of liquefied petroleum gas (LPG) will be adjusted by 5%.

This comes after the Price Stabilisation and Recovery Levy (PSRL) on gasoline goods was reinstated.

The restored PSRL for petrol is 0.16 pesewas per litre, 0.14 pesewas per litre for diesel, and 0.14 pesewas per kilogram for LPG.

Experts have cautioned that the reinstatement of the PSRL, as well as the resulting increase in LPG prices, will further reduce the commodity’s use rate and exacerbate the situation of regular consumers.

LPG is currently priced at $9.76 per kilogram, or nearly $140 for a 14.5 kg cylinder.

Gabriel Kumi, Vice President of the LPG Marketers Association, blamed the situation on the cedi’s poor performance.

“You anticipate the price to continue to go up whenever the cost keeps increasing up and you have constant taxes and levies,” he says.

The price increased from $7.89 to $8.12 in December 2021 during the first pricing window. It increased to $8.22 in the second window of January 2022.

The price increased to $8.60 in the first window of February 2022, and then to $9.29 in the second window.

According to the LPG Marketers Association, the quick rise in prices is impacting their company because LPG demand is falling.

“Business is not doing too well because if you look at the statistics, the consumption of LPG is on a serious decline. So if measures are not taken, and the price continues to go up as it is going now, there will be a lot of negative consequences.”

“Today, some of our members have started laying off workers, and we are not growing. The consequences are quite dire,” Gabriel Kumi added.

The government has established a goal to increase commodities consumption from 25% to 50% by 2030, making the product more accessible to a wider range of people.

However, given the rate at which commodity prices are soaring, many feel that this goal may be unattainable.

Meanwhile, the National Petroleum Authority (NPA) has stated that it is in talks with the Finance and Energy Ministries to find a workable solution to the ongoing fuel price hikes.

According to the statement, the meetings would mostly focus on the abolition of some tariffs on petroleum goods.

Abass Ibrahim Tasunti, the National Petroleum Authority’s (NPA) Head of Pricing, said the NPA has made several ideas to Cabinet for consideration.

“We have made some recommendations to the government as to what it can do, but it all depends on the government’s fiscal space. So for us, we look at what can be done to look at the laws available to us.

“Of all the taxes, which one could have been touched? From the law, the Price and Stabilisation and Recovery Levy is the one that could have been used to support the consumer. Our work is to make sure there is fair pricing,” he told JoyNews.

According to Andrews Agyapa Mercer, the Deputy Minister, this necessitates a discussion among stakeholders as the country attempts to find a solution to the situation.

“It’s a process that has commenced. The NPA has sent the letter to us, and we’ve forwarded it to the appropriate authorities; it’s going to be deliberated, and then whatever decision is taken is going to be in the best interest of all of us.”

“If that decision is taken that government has to subsidise fuel, we all ought to know that post the issues being resolved, prices coming down, whatever amount of money government would have expended would still have to be paid back by all of us,” he said.

Source: myjoyonline.com

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