The Association of Liquid Petroleum Gas Marketing (LPGM) is urging consumers to brace themselves for an increase in prices of fuel in the local pumps, despite the government tabling a proposal to absorb some levies placed on petroleum products.
Speaking on ‘Day Break Upper East’ Show on A1 Radio, the Vice President of LPGM, Gabriel Kumi explained that, even though the government has made its intention to absorb tax levies on petroleum products in the next pricing window, consumers should still expect an increase instead of a relative fall in fuel prices.
Mr. Kumi mentioned that the government’s initiative of zeroing some tax levies placed on petroleum products is yet to be laid before parliament for approval.
He has therefore advised consumers to expect an increase of about 0.45 pesewas in prices of petroleum products because the government is only absorbing a little over 0.14 pesewas which in contrast is meager to be able to affect price fall in the local pumps.
“From our projection prices of petroleum products are going to go up between 7% and 8%, now that translates to if you take a kilo of LPG for instance, 7 and 8% will translate to 0.45 pesewas per kilo. So all things being equal from Monday, prices of fuel is supposed to go up by 0.45 pesewas” He stated.
Adding that, “it’s true that government have announced an intervention but that intervention is not in effect yet because it has to receive parliamentary approval but what it is, is also that Government intervention is not enough to override the rising effect on petroleum product during the next pricing window”.
He concluded by noting that, “in effect, if you subtract government’s intervention which is 0.14 pesewas on levied from the 7% increment of petroleum products which represents 0.45% consumers will still have to pay the remaining 0.31pesewas for fuel.”