According to him, the taxes have been incorporated into government’s revenue projections for the year and any attempt to scrap any of them could spell doom for the current revenue structure.

Speaking on the Citi Breakfast Show on Wednesday, Mr. Tampuli however added that government is putting in place measures to alleviate the plight of petroleum consumers.

[contextly_sidebar id=”8ZxnyvwNnU8qUizzoKuNnq73qPxqJnEM”]“You would agree with me that government has some obligations and these obligations are based on the projected revenue and the revenues that we have accrued. These revenues include the price stabilization and recovery levy. Now that lots of revenue for the government.”

“If you are saying that we should remove completely the Special Petroleum Tax, price stabilization levy among others, then you are just asking for the collapse of the revenue as far as government projects are concerned. What government is doing is in a way responding to the needs and concerns of the Ghanaian people by reducing the price figure by 3%,” he added.

COPEC, ICU demo

The NPA CEO’s made the remark after a demonstration in Accra, organized by the Chamber of Petroleum Consumers (COPEC) in collaboration with the Industrial and Commercial Workers Union (ICU), seeking to force the government to reduce taxes on petroleum products.

Currently, a litre of both petrol and diesel goes for GHc4.62 at some major fuel stations.

This is despite assurances from the NPA that prices will remain fairly stable at the pumps.

The NPP government while in opposition also promised to scrap some taxes on petroleum taxes it described as “nuisance” taxes.

But one year after assuming office, there has been pressure on the  NPP government to honour its promises after it reviewed only a few of the taxes instead of scrapping them completely.

Response to COPEC, ICU demonstration

Responding to concerns raised by the demonstrators, Mr. Tampuli said “government is not interested in seeing that the people of Ghana go through some hardship,” hence his call that they should exercise patience.

“Whatever it is that we do, we give cushion to the Ghanaian consumers…The Minister for Energy has said it several times that government is considering different options aimed at dealing with this situation. So they should be rest assured, they have every right to demonstrate but we are saying that the reason for the demonstration is not as tenable as they want us to believe especially when the prices could have gone way higher than it has but for the intervention of government and there are records there to show,” Mr. Tampuli added.

Click below for Hassan Tampuli’s interview on the Citi Breakfast Show: 

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
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The post Scrapping fuel taxes will ‘collapse’ Govt’s revenue structure – NPA appeared first on Citi 97.3 FM - Relevant Radio. Always.

He said this when he received this year’s “Outstanding Policy” award from the Climate and Clean Air Alliance at the on-going Climate Change Summit (COP23) in Bonn, Germany.

According to him, Ghana is determined to collaborate with countries in the sub-region to adopt a harmonized fuel specification for the entire sub-region similar to what currently pertains in the East Africa sub-region.

A statement from the Alliance said Ghana is the first West African country to move to low sulphur diesel and with a new sulfur content standard of 50 parts per million (ppm), down from 3000 ppm, a remarkable achievement.

“This improved fuel quality directly affects Accra’s 3 million residents, reducing exposure to poor urban air quality and fine particles. With cleaner fuel now available, Accra can lead in the adoption of cleaner bus standards, including importing ultra-low sulphur diesel for Euro 6/VI – soot free – buses.”

The Alliance said the country’s move will influence regional efforts to improve air quality.

Ghana is a major player in the West African fuel system as a fuel refiner and a major export hub for refined fuels. The policy will help lead West Africa’s desulfurization and adoption of cleaner vehicle emissions standards to lower particulate matter (PM2.5) pollution and black carbon emissions.

In December 2016, Nigeria, Togo, Benin and Cote d’Ivoire, joined Ghana in adopting low sulphur diesel fuel standards.

The countries also committed to implement cleaner vehicle standards and work with the ECOWAS Commission towards sub-regional fuel and vehicle emissions standards harmonization by 2020.

Nigeria’s desulfurization impacts all of West Africa, and Ghana’s lead role in cleaning up fuels and vehicles for lower PM and black carbon emissions is key to moving the entire region to low sulphur fuels.

Before adopting the new standards, the National Petroleum Authority held an extensive public consultation including internal and external stakeholders.

It has also been key to the development and adoption of the new standards, and has established a standing committee for the purpose of implementation, monitoring and enforcement.

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By: citifmonline.com/Ghana

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The Chief Executive Officer of the NPA,  Hassan Tampuli, who made this revelation when he appeared before the Mines and Energy Committee of Parliament, said the new policy will bring about additional cost in the production and supply of the product.

[contextly_sidebar id=”LsjZWVjYlGbUkJPuUxGqY3PMLqMnJK5e”] Giving details on how the cylinder re-circulation project will work and its likely effect on prices of LPG products, Mr. Tampuli said: “Currently the policy directive is that, we should have at most six stations. If we have any explosion it should be at those places and not anybody, so the fear and apprehension that people will be suffering will be abated to a very large extent. That is what the cylinder re -circulation module is going to achieve. It is going to lead to a little increase in the price, but it is just marginal which is going to take care of the margins for the LPG bottling plant because that is the new addition to the supply chain, and we do this for our safety and we believe that all in all, the policy of LPG cylinder re-circulation should succeed.”

Following the planned introduction of the policy, government has been met with stiff opposition from the LPG Marketers Association and the Association of Gas Tanker Drivers, who insist the move, will negatively impact their businesses.

There have also been concerns from some Ghanaians about the total cost of the end product.

Cylinder Recirculation Module will collapse our businesses – LPG marketers

The Public Relations Officer of the LPG Marketers Association, Bernard Owiredu, is one of several individuals who had expressed his outfit’s disquiet over plans to introduce the module.

Mr. Owiredu had indicated that, the current module is targeted at collapsing their businesses, despite their many years of investments in the industry.

Cylinder circulation won’t favour the poor – COPEC

The Chamber of Petroleum Consumers (COPEC), also raised concerns about the Cylinder Re-circulation Model of Liquefied Petroleum Gas (LPG) distribution, suggesting it may burden poor Ghanaians.

The Chamber’s Executive Director, Duncan Amoah, noted the inflexibility of the programme and suggested the old system of distribution be employed alongside the new module ordered by President Nana Akufo-Addo.

But the government has said it will engage with all stakeholders to reach a compromise and implement the policy in the interest of the country.

This proposal was among nine cabinet decisions that were taken immediately after the Atomic Junction Gas explosion in Accra, that killed 7 people and injured over 100 others.

NPA inspecting over 600 gas filling stations

Following the crucial cabinet decisions, NPA begun inspecting some 600 LPG filling stations across the country.

The NPA boss told the committee that his outfit which is undertaking the inspection exercise with sector agencies, hopes to finish within the next two weeks.

So far, 299 LPG stations have been inspected with some 43 closed down, and a further 35 earmarked for closure.

NPA to close down 35 more high-risk LPG stations

Mr. Tampuli indicated that, the NPA will close down additional 35 Liquefied Petroleum Gas (LPG) outlets it had identified as high-risk.

“We have marked 35 outlets for close down when the level of their stocks come to manageable levels for us to be able to close down. It is more dangerous to leave the stations with the products that they have than allowing them to sell off and close down.”

“Out of the 299 [LPG filling stations], 132 were in full compliance, and out of the number that we had closed down, we have reopened 34. So if you add the 34 to the ones that we have closed down, it should have been 77, but they have been able to meet the safety protocols so we have reopened them. So we have 43 currently closed down. We’ve been doing this work with the multi-stakeholder committee. The new addition is the Ghana Standards Authority, and together we have been doing some review of the process that we need to put in place to arrest such situations,” he added.

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By: Marian Ansah/citifmonline.com/Ghana
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The Chief Executive Officer of NPA, Hassan Tampuli, made the remark when he appeared before Parliament’s Mines and Energy Committee on Wednesday.

When asked by the committee whether it was possible for the MMDAs to compensate such victims because they grant building permits to the fuel stations, Mr. Tampuli said “I’m not able to agree or disagree with you.”

He explained that because NPA is an implementing agency, they will ensure that it was done if the lawmakers draft such laws.

“On whether the district assemblies that grant the building permits should be responsible for the payment of compensation, I’m not able to agree or disagree with you. If that is the position of parliament that should feature in the legislation that you will be giving to us. But we think that somebody has to pay…”

The NPA boss also said they will collaborate with the sector agencies if need be.

“Of course, the district assemblies are very much involved in this and I’m sure together with our sector ministry, the ministry of local government will be able to come out with some policy direction in this regard. We are implementing agencies and we can only implement the policies that have been handed to us by our sector ministries,” he added.

Concerns have been raised over the safety of LPG filling stations following the surge in explosions recorded in some parts of the country with the recent one at a gas station at Atomic junction in Accra.

In that incident, about seven people perished with hundreds others sustaining various degree of injury.

NPA inspecting over 600 gas filling stations

Cabinet after a crucial meeting following the gas explosion, issued a nine-point directive, in a bid to help prevent explosions.

Following the decision, NPA begun inspecting some 600 LPG filling stations across the country.

The NPA boss told the committee that his outfit which is undertaking the inspection exercise with sector agencies, hope to finish within the next two weeks.

So far, 299 LPG stations have been inspected with some 43 closed down and a further 35 earmarked for closure.

Mr. Tampuli said about 35 gas filling stations are to closed down soon when they finish selling their current stocks for failing the safety checks and other requirements.

“We have marked 35 outlets for close down when the level of their stocks come to manageable levels for us to be able to close down. It is more dangerous to leave the stations with the products that they have than allowing them to sell off and close down.”

“Out of the 299 [LPG filling stations], 132 were in full compliance, and out of the number that we had closed down, we have reopened 34. So if you add the 34 to the ones that we have closed down, it should have been 77, but they have been able to meet the safety protocols so we have reopened them. So we have 43 currently closed down. We’ve been doing this work with the multi-stakeholder committee. The new addition is the Ghana Standards Authority, and together we have been doing some review of the process that we need to put in place to arrest such situations,” he added.

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By: Godwin A. Allotey & Duke M. Opoku/citifmonline.com/Ghana
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Addressing participants at the ongoing Oil Trading and Logistics Downstream Week in Lagos, Nigeria, Chief Executive Officer of NPA, Alhassan Tampuli said export companies were now required to provide records of the import permit of foreign company for verification.

“Now you are required to send us the importer on record and we will confirm from the Regulators in Niger, Mali, and Burkina Faso whether those companies are licensed,” he announced

Mr. Tampuli said companies would have to add a copy of the contract they have with the foreign importer and also attach a list of foreign trucks to be used in order to apply for a ‘no objection’ letter from NPA.

In addition to those rules, he said, export companies would now have to post a performance bond of 150 per cent of the total value of taxes, levies and margins. Bulk Road Vehicles would be allowed to export three times a week where the Ghana Revenue Authority (GRA) will provide escort till the product leaves the shores of the country.

Enumerating on the successes so far, the Chief Executive said since the implementation of the new guidelines, exports to Mali has considerably reduced. “The reverse is that, the GRA is recording increased revenue from domestic consumption of petroleum products”

He noted this was due to the fact that the retail stations were compelled to buy from oil marketing companies “which has adversely shot up the legitimate volumes consumed in the country.”

Touching base on the recently confiscated 15 trucks, he said despite NPA’s inability under its law (ACT 691) to confiscate and auction the product and trucks the NPA were collaborating with GRA (Customs Divisions) to confiscate the product and trucks.

“By virtue of NPA’s Act (Act 691) we are not able to use our law to confiscate and auction them. So we are partnering with Custom’s Division to use their law to confiscate all these 15 trucks and we are about to put them on auction.”

“When we are done, we will revoke the licenses of all these exporters and we will ban all their Directors from actively participating in the downstream petroleum industry. That is the way we think will bring sanity to the industry in Ghana,” he stressed.

Present at the exhibition were Deputy Minister of Energy, Dr. Mohammed Amin Adam; CEO of Chamber of Bulk Oil Distributors, Senyo Hosi, Chairman of the Association of Oil Marketing, Johnny Blagogee and CEO of the Association of Oil Marketing Companies, Mr Kweku Agyemang Duah.

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By: citifmonline.com/Ghana

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His comment is in reaction to a caution by former Minister for Environment, Science Technology and Innovation, Mahama Ayariga, who suggested that, Cabinet’s decision to suspend the construction of ongoing gas and petrol/diesel stations, is illegal.

On Thursday, a Cabinet meeting saw the introduction of some nine safety measures to ensure sanity within the fuel distribution chain nationwide, and to ostensibly curtail explosions.

These safety measures are aside President Nana Akufo-Addo ordering the implementation of the Cylinder Re-circulation Model of Liquefied Petroleum Gas (LPG) distribution.

Some of the directives have however been met with disagreements especially within the LPG retail sector.

But Mr. Tampuli, who was speaking on the Citi Breakfast Show, said, “This is a decision that is being taken by the President of the Republic of Ghana, in accordance with the constitution of Ghana, and other existing laws of the land. Article 57 vests executive powers in the President, and 58 (3) says the president can do so directly or through other officers who are subordinates to him. So even if the President decides to say that the Ministry of Information or Ministry of Energy should do this on his behalf, he’ll be doing this in accordance with law.”

In response to comments that cabinet is only an advisory body, the NPA boss said, “to a large extent, under the constitution, Cabinet is only an advisory body, but its decisions and directives are not decisions of the Cabinet. Per the statement, the President issued the directive on his mandate with cabinet playing an advisory role.”

Prior to the gas explosion at Atomic junction on October 7, there had been talks at government level regarding the implementation of the Cylinder Re-circulation Model of LPG distribution.

The model will ensure that LPG filling points are sited out of densely populated areas and commercial centres.

In the aftermath of the Atomic gas explosion which killed seven persons and injured some 132 others, talks on the Cylinder Re-circulation Model of LPG distribution intensified, resulting in cabinet’s swift move in introducing the nine directives meant to curb fuel explosions.

Cabinet’s Nine ‘Tough’ Decisions

1. Immediate inspection of all gas stations and the vigorous enforcement of existing regulations by the National Petroleum Authority;
2. Review of the current licensing regime to ensure that only those with demonstrable capacity and competence engage in the LPG distribution business;
3. Institution of mandatory training and certification of the staff of Regulators, Oil Marketing Companies (OMCs) and LPG Marketing Companies to ensure the safe handling of LPG;
4. Review the safety protocols along the entire value chain through the combined efforts of the Environmental Protection Agency (EPA), the National Petroleum Authority (NPA), Ghana Standards Authority (GSA), National Fire Service (NFS), Town and Country Planning Department of the Ministry of Environment, Science, Technology and Innovation and the Factories Inspectorate Department of the Ministry of Employment and Labour Relations;
5. Deployment of a task force, within 30 days, to assess the risk that our current LPG infrastructure poses in terms of public health and safety. High-risk stations will be immediately closed down, in accordance with relevant law and without regard to any political or special interests. Low risk stations will be designated for the supply of gas for vehicles with improved safety standards;
6. The immediate incorporation of standards and guidelines developed by Ghana Standards Authority on the handling, storage and distribution of LPG and other petroleum products as technical regulations to strengthen the enforcement regime;
7. The recruitment by NPA of 200 safety auditors to join the staff of the Factories Inspectorate Department of the Ministry of Employment and Labour Relations to check regularly on all stations to ensure full compliance with safety standards and practices;
8. Expedition of action by the Fire Service and the Police Service of on-going investigations. Any operator or regulatory official, against whom any act of criminal negligence is established, will face the full rigors of the law;
9. Immediate cessation, until further notice, of all construction of facilities intended for use as gas or petroleum retail stations.

Of these nine directives, the impending closure of high-risk fuel stations across the country within 30-days, and the halting of the construction of new petrol/diesel and LPG filling points nationwide, have been described as “unfair.”

According to Mahama Ayariga, owners of these properties “have already obtained the necessary permits, have the appropriate clearance and have taken loans to invest in these projects, and that consequently, such a directive will only burden the owners.

But Mr. Tampuli maintains that “…governance is a dynamic arrangement. You do things based on the existences of the time. You cannot tell me that I should apply 2010 law to matters that have come up in 2017… We have to assess the situation and determine whether or not, even though the state has permitted you to put up that structure there, because of the information that has come to our notice currently, we do not think the permit we granted you to proceed is proper.”

“So we can take back the permit that has been given to you. The state has the power to do so. The state cannot be in a straight-jacket situation.”

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By: Marie-Franz Fordjoe/citifmonline/Ghana

The post NPA justifies decision to halt construction of new fuel stations appeared first on Citi 97.3 FM - Relevant Radio. Always.

The NPA was spurred into action following the Atomic Junction gas explosion, and speaking on the Citi Breakfast Show, the Chief Executive Officer of NPA, Hassan Tampuli, said they hope to sustain the momentum in ensuring safety regulations are adhered to.

[contextly_sidebar id=”Josgi1WUz1IbeWc4t51boRCxFMygGRKb”]Following a Cabinet meeting to take decisive actions on lax safety standards at some fuel stations, the President directed the deployment of a task-force to within 30 days, assess the risk that the country’s current LPG infrastructure poses in terms of public health and safety.

Filling points deemed to be “High risk stations” will be immediately closed down, in accordance with relevant law and “Low risk stations will be designated for the supply of gas.”

Mr. Tampuli said the NPA was clear on the directives that were given by government, and on “how to go about the execution.”

“Yesterday [Thursday], our inspection and monitoring team closed down 21 stations across the country, and that is just the number of stations that we monitored, and today [Friday], they will continue,” Mr. Tampuli said.

The NPA will be expected to review the safety protocols along the entire value chain of fuel distribution, with help from the Environmental Protection Agency (EPA), Ghana Standards Authority (GSA), the National Fire Service (NFS), the Town and Country Planning Department of the Ministry of Environment, Science, Technology and Innovation, and the Factories Inspectorate Department of the Ministry of Employment and Labour Relations.

Recruitment of safety auditors

The NPA will also be in charge of the recruitment of 200 safety auditors to join the staff of the Factories Inspectorate Department of the Ministry of Employment and Labour Relations, to sustain checks on all stations to ensure safety standards are being adhered to.

Mr. Tampuli assured that “the 200 safety auditors are going to be people who are eminently qualified to do the work for which they are being hired.”

“They have to have the necessary background in terms of health, safety, and environment qualification, so it’s not going to be just any person without the necessary qualification.”

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

The post 21 LPG stations shut down, more to follow – NPA appeared first on Citi 97.3 FM - Relevant Radio. Always.

He stressed that ever since assuming office, Tampuli took proactive steps to address safety challenges in the sector head on.

[contextly_sidebar id=”lAsY6dLHRXgp3c18yGj3xV3AddHMbmUw”]Speaking to The Finder, he recalled that one of the first things the NPA Chief Executive did was to invite all stakeholders to a major workshop to deliberate on safety challenges and the way forward.

Hosi explained that, it is unfortunate that even before the actions of Tampuli could start yielding results, a major gas explosion rocked Atomic Junction killing 7 and injuring 132.

He therefore called for thorough investigations into the Atomic Junction gas explosion accident and persons found culpable sanctioned.

According to him, people have failed in the discharge of their duties and government should wake up and deal with the issue at hand.

“Who are we holding accountable for the loss of lives, who is going to lose his job for this, who is going to go to prison for this, who is really going to pay for the loss of lives and the loss of property and the embarrassment this has caused the state.”

“It has to do with us purely enforcing the rules. The rules are there, people breach them and when you breach them we hold people accountable, but we never hold anybody accountable and that is the failing of government” he asked.

Hosi stressed that if the mechanism for accountability is not enforced, no policy would solve the problems.

However, he said engaging in blame game and calling for some individuals to be sacked without thorough examinations to deal with the right culprits would be counter productive.

Therefore, he said calls for the formulation of a ‘new’ policy to regulate the activities of gas stations in the country are not the solution.

According to him, the enforcement of already existing laws and constant supervision would prevent gas station disasters.

He was quick to add that it is not to say that a new policy is not necessarily welcome.

He stated that the problem at hand has to do with the concept of accountability that is totally absent in the management of the sector.

The gas explosion at the Atomic Junction Saturday evening has ignited a conversation about where fuel and gas stations should be sited in the country.

Need for accountability

Many other stakeholders have also called for a new policy to be formulated. However, Hosi holds the view that the concept of accountability, which is absent in the management of the sector is the real problem.

He said governments over the years have played around the real issues and failed to put their foot down and ensure that the right things are done regardless of who is involved.

The CEO of CBOD added that “you have to deal with the fundamental thing that has to do with the breach of rules and protocol and holding people accountable for not doing their jobs and that is where we are.

Hosi noted that at the time the gas station was established, there was minimal commercial activity in the area.

He explained that as commercial activity increased, the station should have been relocated or commercial activities restricted.

–

Source: Finder

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According to him, the government has barely spent 10 months in office and therefore cannot be said to have failed in honouring the promise of reducing the price of fuel.

[contextly_sidebar id=”SSN8TxV2G8GAEBozeeKBJsFJV0FXxGIP”]Mr. Tampuli’s comment comes on the back of demands by the minority in Parliament that the government apologizes to Ghanaians for failing to honour their campaign promise to reduce fuel prices, by scrapping some taxes on petroleum products.

The Deputy Ranking Member on the Mines and Energy Committee of Parliament, Adam Mutawakilu, at a press conference on Thursday, said the NPP had been elected on the back of repeated promises to scrap ‘nuisance taxes’ imposed by the previous government, and was going to reduce the cost of fuel for the ordinary Ghanaian, but has failed to do so nine months in office, leading to a hike in fuel prices.

Citi News’ checks have revealed that since January 2017 when the NPP government took over office, fuel prices have increased three times, and hit an all-year-high in September, with petrol selling at an average price of GHc4.29 at the pumps, and diesel going for an average of GHc4.23 per litre.

But Hassan Tampuli in an interview with Eyewitness News on Thursday said that, “Did we make a commitment to remove the excise tax? We did not, but we have removed completely the excise tax. This is not an insensitive government. We have even done things that we didn’t promise to do, how much more things that we promised to do, we will do it, but we will do it in the fullness of time,” he said.

In 2015, when the previous government increased petroleum prices, the then NPP opposition, described the government as being insensitive.

It said it would immediately scrap Energy sector levy that resulted in the increment of the taxes when it comes office, but that is yet to happen.

But Hassan Tampuli said the increase in fuel prices under the current government unlike the previous one, was due to increase in fuel prices globally.

He said he believes that the government must be given more time honour the promise it made to Ghanaians with regards to the price of petroleum products.

“it is less than one year since the government came to power, and we have to apologize for all that we promised to do in our manifesto? Everything that we said we will do in our manifesto, we had to do that within nine months, and we haven’t done that so we have to apologize… Government continues…we cannot do everything in one day,” he said.

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By: Jonas Nyabor/citifmonline.com/Ghana

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The Chief Executive Officer of the National Petroleum Authority (NPA), Hassan Tampuli, at a press conference on Wednesday, gave a litany of reasons why the about ten taxes and margins on fuel prices could not be taken off.

He said the taxes are in the interest of consumers.

[contextly_sidebar id=”m0zzKIf67rKw3rLfEpjFPaULbgWGaE4T”]“…When we hear calls for government to remove those nuisance taxes, we’ve removed the nuisance taxes – these are taxes, levies and statutory margins that every responsible government will ensure that [ they] will remain in the price build up to ensure efficiency, availability of products, quality of the products and to ensure that for every [petroleum] product that we consume within the country, taxes are paid on every litre of petroleum products consumed.”

Fuel prices hit all-year-high, taxes must go down

Fuel prices have hit all-year-high in September 2017, with petrol selling at an average price of GHc4.29 at the pumps, and diesel going for an average of GHc4.23 per litre.

The surge in fuel prices have squarely been blamed on among other things the about ten taxes and margins slapped on the products.

This has compelled some groups and policy think tanks including the Institute of Energy Security and the Chamber of Petroleum Consumers, to call on government to review the taxes to make the products cheaper on the Ghanaian market.

We’ve scrapped some

But the NPA CEO said government’s hands are tied.

He noted that, when the New Patriotic Party (NPP) took over the administration of the country, it scrapped some of the taxes which saw a three percent cut in the prices of fuel, adding that a further reduction will be suicidal.

Below are some of the reasons Mr. Tampuli gave for their inability to reduce the taxes:

Primary distribution margin: It is in the price build up to ensure that products are moved from the coast depot to the inland depots.

So the products come through Accra plains depot of BOST, Tema Oil Refinery and some other private depots. We have to move those products to Kumasi depot, Buipe, Bolgatanga, Maame Water, Akosombo – that margin is supposed to take care the freight cost or transportation  of the fuel from these depots to the inland depots so that consumers around those depots do not pay different prices by reason of the movement in the primary distribution. That is what it’s supposed to be.

UNIFIED PETROLEUM PRICING FUND (UPPF) margin: It’s supposed to ensure a situation where you pay the same price for fuel products anywhere you find yourself in the country. Embedded in the UPPF margin is the pay for the [tanker driver’s] mate who sits in the truck moved from the depot to the distribution outlets. The drivers pay is in there, everything about the transportation cost – the transport owner, the transporters, all of them have their margins coming from this particular UPPF margin.

BOST margin: This is about three percent. BOST margin is supposed to take care of the maintenance of pipelines of the depots – BOST has depots in Accra plains, Maame Water, Buipe, Kumasi and Bolgatanga. All of these depots are supposed to be taken care of one way or the other.

Fuel marking margin: This is a chemical composition which is used to identify the products that are supposed to remain in the country, and not for exports. So it distinguishes the products for exports, and also distinguishes the locally consumed products from those meant for the mines and marines. So every product that we consume in our cars and machines have this chemical composition. That is also what we use to indicate the total consumption within the country for not only identifying dilution and adulteration, but to also see how much taxes we need to get so we correlate almost entirely with the Ghana Revenue Authority.

Distribution margin: Oil marketing companies have investments, they need to have returns on, so they could continue to be in business and ensure that products are within their retail outlets across the country for us to benefit. That distribution margin goes to these marketers; it doesn’t come to government at all.

Dealers/retailers margin: This part of margin goes to the dealer; it does not go the oil marketing company. It goes to the individual dealers who own those retail outlets.

LPG filling plants: That is also used to take care of the distribution of LPG across the country that one does not also come to government of Ghana’s kitty neither does it come to the NPA.

Mr. Tampuli insisted that, tampering with the taxes could amount to shortages in some areas in the country.

“If you touch the primary distribution margin, we are going to get shortages in some other zones in the country. Is that what we are looking at? If you tamper with the UPPF margin, then you are going to ensure that we are going full deregulation. That means that you can sell at any price and include in it your transportation cost without any government intervention – that is not the way to go. And then when you look at the dealers’ margin…those have to also be paid for,” he added.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

The post We can’t reduce taxes on fuel again – NPA appeared first on Citi 97.3 FM - Relevant Radio. Always.