Cylinder Recirculation Model to increase price of LPG – CBOD
The Chamber of Bulk Oil Distributors (CBOD), has warned the introduction of the Cylinder Recirculation Model (CRM) will lead to a rise in the pre-tax cost of bottled gas, which might derail the government’s plans of phasing out the current system of gas purchase.
Chief Executive Officer (CEO) of the Chamber, Mr Senyo Hosi, also warns that the CRM, which is under the Liquefied Petroleum Gas (LPG) promotion policy may lead to the collapse of the activities of LPG marketing companies, as they are less equipped to deal with the incoming CRM regime.
The CBOD’s warning came at the launch of the CBOD’s 2018 Industry Report in Accra yesterday.
Mr Hosi, giving details of the report, stated that Oil Marketing Companies’ (OMC’s) are generally more accessible by virtue of their location and significantly out-number the LPG outlets by a ratio of about 5:1.
The OMCS also possess more easily recognized and trusted brands.
He noted that an addition of LPG retailing to their traditional liquid fuel retailing would significantly hurt the market prospects of LPGMCs who are only licensed to retail LPG.
NPA saves GH?952.42m
Chief Executive of the National Petroleum Authority (NPA), Alhaji Alhassan Tampuli, revealed that the nation saved GH?797.49 million in taxes and GH?154.93 million in regulatory margins yielding a total savings of GH?952.42m in 2018, following the institution of stringent measures by his outfit to illegal activities in the downstream petroleum sector in 2018.
Volumes increased by 574.25 million litres in 2019
He also stated that there was an increase in the sales of petroleum stocks by 574.25 million litres, far in excess of official stocks saleable in the country.
GH?797.49m taxes paid to govt
According to him, this resulted in the nation saving GH?797.49 million in taxes and GH?154.93 million in regulatory margins yielding a total savings of GH?952.42 million.
Alhaji Tampuli also revealed that volumes of AGO regular and PMS increased by 17% and 19% respectively.
He further said that the stringent measures undertaken by his outfit, such as the provision of a performance policy bond at the value of domestic taxes levies and margins had dealt with the issue of export dumping.
Tax reforms which have been put in place, such as the inclusion of domestic taxes on the price of MGO foreign, he revealed, have cured the problem of MGO foreign dumping.
He also reported that smuggling had reduced to a large extent as a collaboration with security agencies and the Ghana Revenue Authority to arrest persons involved as well as confiscation of assets and fuel involved.