New LPG levy meant to improve cylinder, not to burden consumers – NPA

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The newly introduced levy or Cylinder Recovery Margin by the National Petroleum Authority (NPA), is to support LPGMCs/OMCs ahead of the implementation of the Cylinder Recirculation Model (CRM).

The NPA in March launched the pilot phase of the policy in Kade in the Eastern region and Obuasi in the Ashanti Region.

The policy is intended to change the current mode of gas distribution into a more secured and safe manner. The policy is to ensure increase usage of LPG from the current 25% to 50% by 2030.

As part of the CRM policy, the LPGMCs and OMCs will be responsible for the branding, safety and maintenance of the cylinders. Customers will no longer have to take an empty cylinder to be filled, they simply take their empty cylinder to an OMC/LPGMC and pick up a filled cylinder. There will be different cylinder sizes from 3kg to 14.5kg to ensure that consumers pay for what they can afford.

Contrary to claims by some interest groups in the petroleum industry that the levy will burden the consumers, sources say the Cylinder Investment Margin of 13.5 pesewas is rather to support the marketers procure and maintain the cylinders.

A source at the NPA says the regulator is determined to support the LPGMCs and Oil Marketing Companies and has consistently engaged and consulted them on all aspects of the implementation of the energy policy.

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