The Liquefied Petroleum Gas (LPG) Marketers Association has hinted that consumption of LPG will decline by 20 percent by the end of the year if the government fails to scrap taxes on the commodity.
Vice president of LPG Marketers Association, Gabriel Kumi says there has been about a 14 percent reduction in consumption in the first quarter of the year.
In the first three months of 2021 they did about 113,000 metric tonnes but this year they have done about 99,000 metric tonnes.
This means that LPG consumption has gone down by about 13 percent this year compared to the first quarter of last year
They project a 20 percent fall in LPG consumption by the end of the year.
Mr. Kumi also expressed concern about the government’s failure to scrap taxes on LPG to stimulate consumption.
However, he stressed that LPG has an elastic demand, therefore any increase in the price of the commodity will deter people from purchasing.
Bainamultimedia
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