NPA introduces LPG Cylinder Recovery Margins levy

Accra, April 2, GNA – The National Petroleum Authority (NPA) on Thursday said the newly introduced levy or Cylinder Recovery Margin is to support stakeholders in the supply chain ahead of the implementation of the cylinder Recirculation Model (CRM).

A statement signed by Mr Anny Osabutey, a Public Relations officer at NPA and copied to the Ghana News Agency in Accra identified the stakeholders as Marketing Companies of Liquefied Petroleum Gas (LPGMCs) and Oil Marketing Companies (OMCs).

The statement recalled that NPA in March launched the pilot phase of the policy at Kade in the Eastern Region and Obuasi in the Ashanti Region.

It said the policy was intended to change the current mode of gas distribution into a more secured and safe manner.

The policy, the statement said was to ensure increase usage of LPG from the current 25 per cent to 50 per cent by the year 2030.

It said as part of the CRM policy, the LPGMCs and OMCs would be responsible for the branding, safety and maintenance of the cylinders.

The statement explained, “Customers would 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”.

The statement said the NPA was determined to support the LPGMCs and Oil Marketing Companies, and had consistently engaged and consulted them on all aspects of the implementation of the energy policy.
GNA