13 June 2019

Ghana: Cylinder Recirculation Project Begins in October

All is set for the National Petroleum Authority (NPA) to implement the cylinder recirculation project for the distribution of Liquefied Petroleum Gas (LPG) in October, this year.

The project, scheduled to start from Kwaebibirem and Obuasi in the Eastern and Ashanti regions respectively on pilot basis, is expected to create 4,500 new jobs for people.

This was made known at a stakeholders' meeting on the Cylinder Recirculation Model (CRM) in Kumasi on Tuesday, under the theme, 'CRM: Securing our safety, creating more jobs.'

It was to solicit the input and support of the stakeholders as part of the implementation process.

NPA Chief Executive Officer (CEO), Hassan Tampuli, said the project is aimed at providing direction for marketing and distribution of LPG in a safe and efficient manner to facilitate and increase access to LPG nationwide.

Among other objectives, he said the project would ensure local content and participation in the LPG sub-sector in compliance with the downstream local content policy and also sustainability of supply as well as ensure the existence of robust and standard health, safety and environmental practices in the production, marketing and consumption of LPG.

He indicated that relevant licences would be issued and safety protocols keenly observed to ensure the safety of Ghanaians to increase access to LPG for domestic, commercial and industrial use from the current 25 per cent to 50 per cent by 2030.

Ashanti Regional Minister, Simon Osei Mensah, mentioned government's assurance of local content to be fully reserved for Ghanaians and "that non-Ghanaians will not be allowed to operate under the model".

According to the minister, there would be a new price build-up of LPG under the model which would remove the LPG filling plant cost from the price build-up and introduce a bottler's and a primary distribution margins.

Mr Gabriel Kumi, Vice Chairman of the LPG Marketers Association on his part indicated their readiness to do all they could to talk to government to reduce the price of the LPG the fact it should have been subsidised.

He did not understand why a product that should have been subsidised should be charged beyond expectation and said the association would do everything possible to ensure government reduces the price.

"We are going to engage in a "friendly" demonstration against the NPA to ensure our voices are heard for the government to reduce the price of the LPGs," Mr Kumi indicated.


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