TIG Post

Tag: NPA

  • COPEC, Consumer Protection Agency sue NPA over new levy on LPG

    The Chamber of Petroleum Consumers and the Consumer Protection Agency have sued the National Petroleum Authority (NPA) over the introduction of the Cylinder Recirculation Recovery Margin which will allow LPG operators to start charging 13.5 pesewas for each kilogram of LPG.

    The two companies in their writ of summons argue among others that the NPA failed to consult with various stakeholders before introducing the policy.

    “Plaintiffs state that the failure of the 1st defendant to consult with the service providers before the introduction of the new petroleum pricing formula has led to agitations among such service providers, particularly, the LPG Marketing Companies Association of Ghana (LPGMCs) who have issued a statement calling on the 1st defendant to withdraw the CRM.”

    The plaintiffs are thus seeking a declaration that the Cylinder Recirculation Recovery Margin be declared unlawful on grounds that the Chief Executive Officer (CEO) of NPA, Hassan Tampuli failed to consult the NPA Board before introducing the policy.

    “A declaration that the failure of the 2nd Defendant [Hassan Tampuli] to secure the approval of the 1st Defendant  [NPA] board before announcing the new LPG cylinder recovery margin was unlawful,” portions of the writ said.

    Purpose of Cylinder Recirculation Model

    The NPA on Wednesday, April 1, 2020, directed industry players to begin 13.5 pesewas charge on each kilogram of LPG.

    It also instructed Oil Marketing Companies to increase the levy on Fuel Marking Margin from three pesewas to 4.5 pesewas per litre on every product.

    According to the NPA, the introduction of the Cylinder Recirculation Recovery Margin is to support stakeholders in the supply chain ahead of the implementation of the Cylinder Recirculation Model.

    Although the NPA has justified the move, some industry watchers have however said that both directives are unlawful and must be withdrawn with immediate effect given the impact it will have on the business.

    NPA in its release issued on Friday, April 4, 2020, maintained that such calls are unfortunate because its projection rather shows that for this very pricing window (1st April to 15 April, 2020), consumers are expected to enjoy a price reduction of about 11.56 percent even with the introduction of the Cylinder Recovery Margin.

    “The attention of the National Petroleum Authority (NPA) has been drawn to a statement issued by the LPG Marketing Companies Association of Ghana (LPGMCs) on the above subject, dated April 3, 2020, calling for the withdrawal of GHp 13.5 Cylinder Recovery Margin which took effect on April 1, 2020. We wish to state categorically that, contrary to their claim that the introduction of the margin will increase the product price at the pumps and thereby burden the consumer, the facts as they stand do not support that.”

    “The margin is, therefore, to assist the marketers to offset some of their financial expenses, in accordance with the full cost recovery principle of petroleum products pricing in Ghana. It is therefore unfortunate for the LPGMCs to hold such a position”, it added.

    The NPA had said it will continue to engage in this and other related issues of mutual concern over the concerns raised regarding tax components on LPG.

    “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 NPA would, therefore, like to assure members of the general public of our commitment to ensure product availability, affordability, and accessibility, while ensuring the safety of the general public and the business viability of players across the value chain”, the statement concluded.

     

    Source: citinewsroom 

  • GHp 13.5 Cylinder Recovery Margin wont increase gas price NPA

    The National Petroleum Authority (NPA) has said the the introduction of the GHp 13.5 Cylinder Recovery Margin would not lead to any pump price increment of Liquified Petroleum Gas (LPG) in Ghana.

    The LPG Marketing Companies Association of Ghana (LPGMCs) had issued a statement on April 3, 2020, calling for the withdrawal the GHp 13.5.

    The margin took effect on April 1, 2020.

    But a statement issued by its Corporate Affairs Department, the NPA stated categorically that, contrary to the claim of the marketing companies that the introduction of the margin will increase the product price at the pumps and thereby burden the consumer, the facts as they stand do not support that.

    It says “ per our projection for this very pricing window (1st April to 15 April, 2020), consumers are expected to enjoy a price reduction of about 11.56 percent even with the introduction of the Cylinder Recovery Margin.”

    “These projections were made before the decision to introduce the Cylinder Recovery Margin.

    It is important to state that under the Cylinder Recirculation Model (CRM), LPG cylinders will be procured, owned, branded and maintained by the Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs),” it stated.

    The LPGMCs and OMCs will assume full responsibility of the safety and maintenance of the cylinders, and also be liable for any accident involving their branded cylinders, it stated.

    “The margin is therefore to assist the marketers offset some of their financial expenses, in accordance with the full cost recovery principle of petroleum products pricing in Ghana.”

    “It is therefore unfortunate for the LPGMCs to hold such a position. That notwithstanding, the NPA will continue to engage them on this and other related issues of mutual concern,” according to the statement.

    “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 stated.

    “It is also a responsibility of the NPA that the safety and security of the general public is not compromised,” it added.

    Source: DailyGuideNework.com

  • We will not burden consumers with additional taxes NPA tells LPGMCs

    The National Petroleum Authority (NPA) has indicated it would burden consumers of their product with additional taxes especially not when the country is on partial lockdown and trying very hard to fight the deadly Coronavirus pandemic.

    This debunks media reports that the LPG Marketing Companies Association of Ghana (LPGMCs) are calling for the withdrawal of GHp 13.5 Cylinder Recovery Margin which took effect April 1, 2020.

    According to the NPA in a statement to GhanaWeb, the margin is to assist marketers to offset some of their financial expenses, the action, they averred is in accordance with the full cost recovery principle of petroleum products pricing in Ghana.

    “Per our projection for this very pricing window (1st April to 15th April, 2020), consumers are expected to enjoy a price reduction of about 11.56 per cent even with the introduction of the Cylinder Recovery Margin. These projections were made before the decision to introduce the Cylinder Recovery Margin,” the statement reads further

    The NPA then assured the general public of their commitment of ensuring product availability, affordability and accessibility, while their safety and the business viability of players across the value chain.

    Source: www.ghanaweb.com

  • Scrap obnoxious, ‘nuisance’ increment of LPG Jinapor

    The Member of Parliament for Yapei Kusawgu Constituency in the Northern Region, John Abdulai Jinapor has described the decision by the National Petroleum Authority (NPA) to implement a Cylinder Recirculation Margin of GHp13.5 per kilogram for LPG at time some parts of the nation are under lockdown due to the fear of spread of the coronavirus as “utter wickedness and the highest level of insensitivity to the plight of the ordinary Ghanaian.”

    Mr Jinapor has also alleged that the National Petroleum Authority (NPA) has further increased the Fuel Marking Margin from GHp3/ltr to GHp4.5/ltr.

    “The imposition of the Cylinder Recirculation Margin coming at a time of Government’s declaration of a partial lockdown of Accra, Tema, Kumasi and parts of the Central Region will only exacerbate the plight of the ordinary Ghanaian,” Mr Jinapor said in a Facebook post.

    He said as a result of the lockdown and the enforcement of the social distancing directives by the President, “Ghanaians are already experiencing very difficult moments as they are unable to generate sufficient income to offset the rising cost of living.”

    In the light of the current happenings Mr Jinapor noted that “rather than burdening the citizenry with such insensitive and draconian policies, the Akuffo-Addo Government must rather demonstrate compassion by initiating policies and programmes that will alleviate the suffering of the ordinary Ghanaian.”

    The lawmaker has, therefore, called on the NPA, as a matter of urgency to “immediately scrap this obnoxious and nuisance increments at this difficult moment.”

     

    Source: classfmonline.com

  • National Petroleum Authority outdoors premix retail outlet

    The National Petroleum Authority (NPA) in collaboration with the Ghana Oil Company Limited (GOIL) has outdoored a standard premix retail outlet at Winneba in the Central Region.

    The Winneba Outlet is the sixth of its kind, to be commissioned by the NPA. The other five have been sited at beach landing sites in the Greater Accra and Volta regions.

    Read: No premix fuel in Salakope over two years Fishermen cry

    The Energy Minister, John Peter Amewu who was the Guest Speaker, said the retail outlet would bring convenience to the fisher-folks who hitherto had challenges accessing premix fuel.

    It would also lighten their trading financial burden trade and enable them to access fuel directly from the outlet without any middlemen.

    The Minister said this would discourage the practice of diversion and ensure efficient and equitable distribution of premix fuel to fisher folks and also reverse the perennial challenge of shortages.

    Mr Amewu, however, said the subsidy on premix fuel was now 63% of the full price, up from 43% in January 2017.

    The Government from 2017 to May 2019, had spent GHS373.9 million to cushion fishermen.

    “A total of GH¢137.5 million was spent in 2017, while GH¢160.8 million was spent in 2018. This amount is projected to rise to about GH¢206 million in 2019. A total of GH¢134,604,110 million has been accumulated from January -September 2019,” the Minister said.

    The CEO of the NPA, Mr Alhassan S. Tampuli said the construction of the premix retail outlets demonstrated their commitment to improving standards and safety in the petroleum downstream industry.

    The facility follows the first prototype premix retail outlet constructed by the NPA in 2013 at Brawire, near Axim.

    The menace of diversion and hoarding associated with premix fuel distribution had reduced, he said, adding that, the fuel was now adequately available to fisher folks at affordable prices.

    “The drastic reduction is attributed to programmes and policies rolled out by the NPA in collaboration with National Premix Fuel Secretariat to monitor the distribution of premix fuel to ensure that the subsidised premix fuel gets to the fisherfolks,” he said.

    Read: Digitisation of premix fuel distribution soon VP Bawumia

    Mr Osei-Kwame Prempeh, Group CEO of GOIL, said he was happy that the NPA nominated the state-owned Oil Marketing Company, GOIL, to spearhead the construction and operation of the outlets.

    “It is our expectation that these retail outlets will serve the purpose for which they were constructed to ensure safe distribution and handling of premix at the respective landing beaches,” he said.

    He advised the fishermen to employ in safety practices when dealing with the fuel.

    GOIL, he said, would ensure that the fishermen had adequate premix fuel for their fishing.

    Chief Fisherman of Winneba, Neeyin Mber who spoke on behalf of fishermen in the area, thanked the NPA and the Government for the premix retail outlet on their land.

    He said they would patronise it to make their operations successful.

    The event was chaired by Mr John B. Ninson, the Municipal Chief Executive of Effutu District. It was attended by members of the fishing community and some residents of Winneba.

     

    Source: ghananewsagency.org