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Cylinder Recirculation Policy Begins December 2022 – NPA

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Government is set to begin rolling out the Cylinder Recirculation Module by the end of this year.

This was disclosed by the Chief Executive of the National Petroleum Authority, Dr. Mustapha Abdul-Hamid, at the Ghana International Petroleum Conference.

The policy which was firmed up in 2018 after series of deadly gas explosions seeks to provide direction on marketing and distribution of LPG in a safe and efficient manner and facilitate an increase in access to LPG nationwide.

 

The objective is to ensure that at least 50% of Ghanaians have access to safe, clean and environmentally friendly LPG for increased domestic, commercial and industrial usage by 2030.

Initial attempts by the national petroleum authority to introduce the model last year were met with protests and strikes by the association of LGP marketers. They indicated its implementation will lead to job losses.

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But after series of consultations, the NPA announced in July 2021, that Cabinet has given approval for the rollout.

Under this system, no consumer owns a gas cylinder but goes for a filled one at the certified points and leaves the empty one for refilling; meanwhile, new users will have to also pay a deposit before taking the filled cylinder to enable the outfit purchase new cylinders for the project.

 

So far, 37,000 cylinders had been procured by the authority to undertake the initial phase of the project.

Last month, the Association of LPG marketers again raised concerns about the policy which they say has been counterproductive for their businesses. The agitation and the subsequent decision to embark on strike was register its displeasure over government’s decision to place a ban on the construction of new LPG stations since 2017.

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“You need to ensure that the current players in the industry are properly taken care of. You need to ensure that the players who have built the industry over the years are taken care of in terms of trying to rope them in properly so they drive and own the policy,” Vice President of the LPG Marketers Association of Ghana, Gabriel Kumi argued.

 

“This industry as I’ve indicated has been built by indigenous Ghanaians and the private sector. So, if the government is coming up with a new policy, it’s important that government really equips us, takes us through and drags us along,” he added

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