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29.07.2021 Business & Finance

Government is committed to implementing Cylinder Recirculation Model – NPA boss

Government is committed to implementing Cylinder Recirculation Model – NPA boss
LISTEN JUL 29, 2021

The Chief Executive Officer (CEO) of the National Petroleum Authority (NPA), Dr. Mustapha Abdul-Hamid has reiterated government's commitment to the implementation of the Cylinder Recirculation Model (CRM).

Dr. Abdul-Hamid gave the assurance at a meeting with the LPG Marketers Association (LPGMC) at the Fiesta Royale Hotel in Accra on Wednesday.

“It is not in our interest that four years after the commitment to implement a cylinder recirculation model, it has still not been done,” he said.

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“We at the NPA are determined to make this policy a reality. In the entire sub-region, it is only Ghana and Nigeria that still operate LPG filling stations. We ought to move with the times” he added.

The meeting was part of Dr. Abdul-Hamid's stakeholder consultations in the downstream petroleum sector.

It was to afford the CEO of NPA an opportunity to understand the challenges that bedevil the LPG sector and how those challenges can be surmounted.

Welcoming Dr. Abdul-Hamid and his Directors to the meeting, the Vice President of the LPG Marketers Association, Mr. Gabriel Kumi said that while the LPGMC is not against the implementation of the CRM, it is, however, opposed to how the NPA has handled its implementation all these years.

He said that the NPA has sought to implement the policy as if “there was no LPG market in Ghana prior to the floatation of the idea of a CRM.”

“Some of us have been in the LPG business for the last 20-30 years and so when the NPA behaves as if it is implementing a policy from scratch, it is worrying” he added.

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Mr. Gabriel Kumi also called on the government to remove all taxes on LPG to make it affordable to many Ghanaian people.

He lamented the situation where people buy LPG in “tots”, and said that it is a disincentive for people to enter the LPG market.

Mr. Gabriel Kumi also assured that the LPGMC is not against the CRM and promised the cooperation of the association in seeing to its proper implementation.

He, however, called on the NPA boss to plead on their behalf to the government to grant a partial lifting of the ban on the opening of new LPG stations, since many of them were at various stages of completion before the ban was imposed, in the wake of the Atomic Junction gas explosion.

Responding to Mr. Kumi, Dr. Abdul-Hamid thanked the LPGMC for their renewed commitment to the CRM policy.

He assured them that changes were going to be made within the NPA to give the LPGMC confidence to cooperate with the NPA to see to the implementation of the CRM.

Dr. Abdul-Hamid asserted that in negotiation, something must always give, and to that extent, he is going to consult with the Energy Minister to request for a partial lifting of the ban on the establishment of LPG stations, in order to allow those who had invested in them to reap the benefits of their investment.

Both the NPA and the LPGMC assured of a renewed friendship and cooperation that will see to the growth and development of the LPG sector of the downstream petroleum industry.

“No more fight,” Dr. Abdul-Hamid said, to which the LPGMC responded, “no more fight.”

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