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Alex Mould asks: Why need to 98% of LPG individuals spend new margin to profit only 2%?


Former Main Executive of the Countrywide Petroleum Authority (NPA), Alex Mould, has kicked against the introduction of a GHp13.5 Cylinder Restoration Margin by the NPA in the previous petroleum pricing window.

In accordance to him, even although the timing was incorrect, he does not consider the decision was correctly imagined as a result of prior to its implementation to above burden the shopper for the duration of this kind of tricky and tumultuous periods.

“Why should shoppers outdoors the new system’s pilot regions fork out now?
This distribution method is currently being supplied a demo run in the next pilot web-sites: Kade in the Japanese location and Obuasi in the Ashanti area, which presently account for less than 2% of whole LPG usage.

“However, as the Cylinder Recovery Margin has been released country-wide, this connotes 98% of consumers are paying for the advantage of the 2% i.e. all those in the two pilot areas,” the Finance and Strength specialist queried.

Go through Comprehensive Assertion

WHY Have to 98% of LPG People Pay NEW MARGIN TO Benefit ONLY 2% – ALEX MOULD TO Federal government

We have an understanding of the Nationwide Petroleum Authority (NPA) introduced a GHp 13.5 Cylinder Restoration Margin all through the last Petroleum Pricing window.

This is bad timing by the Authority  considering the current overall health crisis the last point the purchaser needs is to be burdened with this margin in the course of these types of challenging and tumultuous occasions.

As this sort of, the NPA owes the normal general public a complete and comprehensive rationalization. We recognize they’ve engaged stakeholders in 10 out of the 16 locations but I even now simply cannot fathom why the hurry to introduce the new margin when there’s not adequate literature out there to educate and put together the minds of LPG consumers.

For starters, why the selection to quickly burden all shoppers (even people exterior of CRM pilot and operational locations), with the margin? Why really should consumers exterior the new system’s pilot locations shell out now?
This distribution program is becoming supplied a demo run in the pursuing pilot web-sites: Kade in the Eastern area and Obuasi in the Ashanti region, which now account for much less than 2% of overall LPG use.

Nonetheless, as the Cylinder Recovery Margin has been launched country-broad, this connotes 98% of people are having to pay for the reward of the 2% i.e. these in just the two pilot regions.

Silently slipping the Cylinder Recovery Margin into the pricing design with no prior communication is not only unfair but arrives throughout as deceitful.

In particular at a time when prices have fallen and the gain need to accrue to consumers!!!

Some other issues that the NPA requirements to remedy involve the next:

  • Is there a roadmap that can be shared with the general public to have an understanding of the complete rollout system?
  • How will the margin be gathered, and what accounting mechanisms are in spot to be certain transparency and successful disbursement measures? i.e. Payment Accounts, Accountable parties for disbursement, and so forth. 
  • Is there a interaction program for the public to study the tips about use, phase-out, and substitute of latest cylinders?
  • Clarity on why customers who have currently invested in ownership of cylinder(s) are becoming unlawfully billed for new types with no additional gains?
  • How will existing cylinder entrepreneurs refill their cylinders in this new recirculating product?
  • Are cylinder homeowners now trapped with redundant cylinders that can not be loaded? There should really be some type of cylinder exchange or replacement approach, with a acquire-back again or trade system so present cylinders will instantly be replaced, absolutely free of cost, in this recirculation workout.

These are thoughts boggling questions that I have researched myself but astonishingly found tiny or no responses on the internet nor the NPA’s web site.

The LPG Marketers have called for a withdrawal of this new LPG margin. Yet, the NPA repeatedly insists that the new LPG margin did not consequence in LPG rate hikes.

It is a disingenuous and inconsiderate Regulator who disregards the plight of shoppers!!!


Alex Mould

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