The LPG Marketing Companies Association of Ghana has responded sharply to remarks made by the Chief Executive of the National Petroleum Authority (NPA), Dr. Mustafa Hamid, at the recent Ghana International Petroleum Conference (GhIPCon).
The Association refuted claims that they oppose the Cylinder Recirculation Model (CRM), a distribution system which allows a consumer to bring empty cylinders to an agreed point in exchange for a filled cylinder.
They clarified that, they have engaged in discussions with the NPA and have agreed that both refilling and CRM systems should operate simultaneously.
Their advertisements aim to promote LPG usage and support indigenous businesses, not to oppose CRM.
They criticized the NPA for denying their requests to mount cages at LPG stations for CRM distribution, calling Dr. Hamid’s accusations of being backward-looking particularly ironic and disingenuous.
In a press statement, they highlighted that the LPG Marketing Companies Association and LPG Retailers Association have invested over $400 million in the industry, with around 60% financed through bank loans.
They argued that these substantial investments by indigenous Ghanaians over the past 25-30 years should not be sacrificed merely for the sake of change.
They questioned the potential job creation promised by CRM, urging the NPA to provide concrete data on the number of jobs CRM has created since its launch, as vague claims of ‘Aboboyaa’ jobs lack transparency and authenticity.
They noted that no country with a well-established, regulated LPG distribution network has abandoned it for CRM without due process and adequate compensation to indigenous investors.
They cited Colombia, which provided full compensation during its CRM transition, and Nigeria, which is moving back to refilling plants despite starting with a dual system.
They argued that, Ghana should aim to perfect its existing system rather than blindly following trends, stressing the need to manage change carefully to avoid adverse outcomes.
The Association urged the NPA CEO to avoid making inflammatory remarks that undermine their association and incite the public against them.
They called for the NPA to maintain neutrality and fulfill its role as a regulator, criticizing the use of funds generated by their members to support and promote foreign entities at the expense of indigenous Ghanaian businesses.
Find attached press statement:
