We introduced margins on LPG not a tax – NPA

The National Petroleum Authority (NPA) has clarified that it recently introduced a bottling plant and cylinder investment margins on Liquified Petroleum Gas (LPG) and not a tax.

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.

It is not a tax; it is a margin, specifically the bottling plant margin and cylinder investment margin.”

He said the margins play specific roles in the price build-up and that the marketers’ margin goes to the LPG marketing companies that distribute the product.

As for the Bottling Plant and Cylinder Investment Margins, he said they accounted for about 6% of the price of LPG.

So, the bottling plants also need a margin because we have invested in the facility…The bottling plant margin because now under the new value chain, the bottling plants have been constructed, currently we have four of them one is in Kumasi three are in Tema.”

“So, once they start selling, the price of LPG that they will sell will have a bottling price margin in there…So the total is 44% of that $80 per metric ton is the bottling price margin…The margin is necessary because it is justified under the value chain we have,” he stated.