Ghana’s Chamber of Oil Marketing Companies and Chamber of Bulk Oil Distributors on Thursday condemned what they described as the unlawful diversion of money from the country’s Liquefied Petroleum Gas (LPG) Fund to the Ghana Cylinder Manufacturing Company, warning that industrial action could follow if the decision is not reversed.
In a joint statement signed by COMAC CEO Dr. Riverson Oppong and CBOD CEO Dr. Patrick Ofori, the industry groups said the move undermines the fund’s legal mandate and threatens national energy safety policy.
The LPG Fund, established under Legislative Instruments LI 2262 (amended) and LI 2481 and implemented by the National Petroleum Authority on April 1, 2024, was designed to finance LPG bottling plants and support the Cylinder Recirculation Model (CRM) to ensure safer distribution nationwide.
The associations said the fund includes a $44-per-metric-tonne bottling plant margin and a $36-per-metric-tonne cylinder investment margin, both earmarked exclusively for infrastructure expansion and the withdrawal of unsafe cylinders from circulation.
Redirecting the money to the Ghana Cylinder Manufacturing Company (GCMC), they argued, amounts to a breach of statutory obligations and risks derailing efforts to improve access to LPG while removing defective cylinders from the market.
COMAC and CBOD warned that the alleged reallocation could endanger lives by slowing investment in safety infrastructure and the nationwide rollout of the CRM system.
Beyond safety concerns, the groups said private operators who invested heavily under the existing framework face financial losses, while thousands of jobs across the downstream petroleum sector could be at risk.
They added that consumers may ultimately bear the burden through higher prices, reduced supply and lingering safety hazards, potentially weakening investor confidence in Ghana’s energy sector.
The associations demanded an immediate halt to any disbursement to Ghana Cylinder Manufacturing Company (GCMC), restoration of any allocated funds, public reaffirmation of the fund’s statutory purpose, and quarterly audited reports on its use, stating they would pursue legal, policy and public measures including possible strike action if corrective steps are not taken.
Source : Energy Ghana