Minority Demand Accountability of Amount Charged on CRM Levy by NPA

Minority Demand Accountability of Amount Charged on CRM Levy by NPA

     Ranking Member on parliament’s Mines and Energy Committee, Adams Mutawakilu

The minority in parliament has called on the National Petroleum Authority (NPA) to openly disclose to the house the amount which was raised by the Authority before the annulment of the Cylinder Recirculation Model (CRM) by the Energy Minister.

The ranking member on parliament’s mines and energy committee, Adams Mutawakilu made this known in an interview with an Accra based radio station.

“We call on the NPA to openly disclose how much was raised and how consumers could be rebidded in respect of the amount that they have already collected. That amount cannot be used by NPA for any other thing they must come out clearly to let us know how much they have raised from 1st April to 16th April,” he said.

Background

It can be recalled that the NPA introduced a new Cylinder Recovery Margin (CRM) on Liquefied Petroleum Gas (LPG) which took effect on April 1, 2020. This new CRM was to add extra GHp13.5 per kilogram of LPG. The new move by the NPA raised criticisms from several industry players claiming that the new levy was illegal and not approved by the parliament.

However, the NPA boss Hassan Tampuli in a statement argued that the new levy introduced was to allow consumers to enjoy a reduction of 11.56 percent and that claims of LPG Marketing Companies Association of Ghana (LPGMCs) are not factual.

Read Also: New LPG Charge Not a Levy but a Margin- NPA Boss

Notwithstanding, the Chamber of Petroleum Consumers (COPEC) and the Consumer Protection Agency (CPA) sued the NPA for the introduction of the Cylinder Recirculation Recovery Margin (CRRM).

The plaintiffs in their writ of summons argued that the NPA failed to consult with various stakeholders before introducing the policy.

Read Also: NPA Sued By COPEC And Consumer Protection Agency Over New Levy On LPG

The Energy Minister, John Peter Amewu on Thursday, April 16, 2020 at a press briefing announced that the CRM levy has been withdrawn by the government.

Also read: New CRM levy on LPG withdrawn – Energy Minister