The National Petroleum Authority (NPA) has described as unfortunate complaints and the position taken by LPG Marketing Companies (LPGMCs) with respect to the Cylinder Recovery Margin (CRM).
According to the NPA, the margin is to assist marketers to offset some of their financial expenses in accordance with the full cost recovery principle of petroleum products pricing in Ghana.
The Authority noted that this has become expedient because, under the Cylinder Recirculation Model, LPG cylinders will be procured, owned, branded and maintained by the Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs).
They will, therefore, assume full responsibility for the safety and maintenance of cylinders under the new model, while also being liable for accidents involving their branded cylinders.A release from the Authority assured that the introduction of the margin will not increase the price of the product at the pumps contrary to claims of the LPGMCs.
Consumers, the NPA noted, will rather enjoy price reduction of about 11.56 even with the introduction of the new margin per projections for the first April pricing window.
The projections were made before the decision to introduce the cylinder recovery margin, the release said.The Authority, however, pledged to continue to engage the LPGMCs on the issue and other related issues of mutual concern.
“We take note of the concerns raised in the statement regarding tax components in LPG and, we are happy to communicate a positive outcome in the fullness of time.”
“It is the sole priority of the NPA that the public interest is served. It is also a responsibility of the NPA that the safety and security of the general public are not compromised.”
It stressed that it is in the interest of the public, petroleum service providers, motorists and consumers of the product to develop a model that will secure the safety of the general public to forestall occurrences of gas explosions as witnessed in the past.
“We are certainly aware of the difficult situation we all find ourselves in at this time, and the last thing we will do is to further burden the consumer with additional taxes.”
The Authority assured the public of its commitment to ensuring product availability, affordability, and accessibility while ensuring the safety and business viability of players across the value chain.