Ghana: Paramount Chief of Drobo Appeals to Govt to Subsidise LPG Price

15 October 2019

Sunyani — The Paramount Chief of Drobo Traditional Area of the Bono Region, Okokyeredom Sakyi Ako II, has appealed to the government to consider subsidising the price of LPG, to help make the product more affordable.

This, he said, would boost domestic use of LPG, especially among low income earners including the rural folk.

Okokyeredom Sakyi Ako explained that affordable LPG would make the impending implementation of the Cylinder Recirculation Model (CRM) by the National Petroleum Authority (NPA) a success.

He said, "The devastating impact of climate change on our environment makes domestic LPG consumption a necessity to discourage the use of charcoal and wood fuel to safeguard our forest cover from further degradation."

Okokyeredom Sakyi Ako made the call when he chaired stakeholders' engagement on the CRM policy, held here in Sunyani.

The CRM seeks to provide direction on marketing and distribution of LPG in a safe and efficient manner, and facilitate increase in access to LPG nationwide.

The goal of the policy is to ensure that at least 50 per cent of Ghanaians have access to safe, clean and environmentally friendly LPG for increased domestic, commercial and industrial usage by 2030, hence the forum to solicit inputs.

Okokyeredom Sakyi Ako stated that per the number of gas explosions in the country and its related fatalities, it has become imperative for a paradigm shift, and, urged the public to embrace the CRM policy to protect lives and property.

The Chief Executive Officer (CEO) of NPA, Alhassan Tampuli, assured stakeholders in the LPG business that there would be no job losses, but rather the policy would create more job opportunities.

He said "Direct job creation is estimated at more than 4,500 in relation to new jobs under the actors of the new value chain and door-to-door delivery service. This does not affect current jobs of LPG Bulk Transporters, LPG Bulk Distribution Companies, and LPG Bulk Storage companies."

Mr Tampuli said that the policy would be implemented to increase LPG usage without compromising safety, indicating that the relevant licences would be issued and safety protocols would be observed.

The Vice Chairman of LPG Marketing Companies Association of Ghana, Gabriel Kumi, urged the government to remove all "nuisance taxes" on LPG to help achieve the goal of the CRM policy.

He observed that only lower price could attract more people into the consumption net in order to increase national consumption level from the current 25 per cent to 50 per cent by the year, 2030.

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