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The Chamber of Petroleum Consumers Ghana (COPEC), and the Consumer Protection Agency (CPA), have sued the National Petroleum Authority (NPA) over the introduction of the Cylinder Recirculation Recovery Margin (CRM), which will allow LPG operators to start charging 13.5 pesewas for each kilogram of LPG.
The two entities in their writ of summons contend among other things that the NPA did not seek parliamentary approval for the levy, and did not also consult with various industry players before the introduction.
This, they explain has led to some distress especially among the LPG Marketing Companies Association of Ghana (LPGMCs).
The plaintiffs are thus praying the court to direct the NPA to withdraw the CRM and declare the imposition of the levy ‘unlawful’ on grounds that the Chief Executive Officer (CEO) of NPA, Hassan Tampuli did not consult the NPA Board before introducing the policy.
“A declaration that the LPG cylinder recovery margin component of 13.5 Ghana pesewas per kilogram imposed by the defendants on 1st April, 2020, and which has resulted in an upward review in the price of LPG is a tax, as such defendants required the approval of Parliament to impose same.”
“A declaration that the LPG cylinder recovery margin component of 13.5 Ghana Pesewas per kilogram imposed by the defendants on 1st April, 2020 leading to an upward review in the price of the LPG is inconsistent with the provision of ACT 691 AND LI 2186.” the letter noted.
COPEC and the CPA are also seeking for “compensatory damages and an order to the NPA to refund to consumers who have already been affected by the LPG cylinder recovery margin.”
Among other demands, COPEC and the CPA pray the court to direct the NPA to cease the collection of the illegal LPG cylinder recovery margin and “account for the total sum of money accrued from the imposition of the illegal LPG cylinder recovery margin and costs associated therewith.”
In addition, the two entities are calling on the NPA to “publish the report on the LPG Cylinder Recirculation Model Programme before making any decision to extend the programme to cover the entire nation.”
Background
It will be recalled that 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.
Although the NPA has justified th meove, some industry players have said that both directives are unlawful and must be withdrawn with immediate effect given the impact it will have on the business.
In an earlier release issued by the NPA, on Friday, April 4, 2020, they 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.
