According to the Association, the two depots’ presence is inimical to the survival of Indigenous businesses.

“Our boycott of the two depots that is Sage Petroleum and Blue Ocean depots in Tema, whose activities we see as inimical to the survival of Indigenous businesses shall continue to be in force”, Gabriel Kumi, Vice President of the LPG Marketer Association said.

“We shall continue to intensify our advertisements in both radio and television to ensure that we encourage Ghanaians to use more LPG. We assure Ghanaians that our LPG stations are safe and sound and they are pocket friendly and they are very transparent. So, Ghanaians should feel free to do business with us”, he added.

He continued that, its members have invested several millions of dollars in the sector and therefore the Cylinder Recirculation Model policy must be looked at again.

“We met with the new Minister of Energy, Herbert Krapa – a very smart and intelligent young man – with his team, and they asked all the questions that they wanted to ask. We provided all the answers that we needed to provide.

“He really understood our position, and as always our position has been very clear and you can’t throw away the over $450 million investments indigenous Ghanaians [business] have made over the years away. You can’t throw away the 10,000 employment we offer to Ghanaians and you can’t collapse about 41 LPG marketing companies”, he mentioned.

He has promised to deal with all the issues to ensure that the business strive so that we can all achieve the penetration of LPG that we are all looking for”, Mr. Kumi added.

ALSO READ:

• NPA’s unfairness will render our 10,000 workers unemployed – LPG Marketing Companies

• LPG Marketers assure of no shortage of LPG

This is coming after the LPG Marketers Association clashed with the National Petroleum Authority over its decision to delay return to Atuabo to lift gas.

Vice Chairman of the LPG Marketers Association, Gabriel Kumi, who is unhappy with the NPA argued that the association did not mention that it will not return to Atuabo to lift gas.

According to him, its members are currently lifting gas from Tema due to the maintenance work at Atuabo and should return to Atuabo next week.

“No where in our letter did we mention Atuabo; so we are surprised that he [Obed Boachie, Head of Regulation at NPA] is trying to press the panic button by suggesting that we have decided not to go to Atuabo. In any case, you NPA wrote to us that, Atuabo is undergoing some maintenance and that we should revert back to Atuabo.”

“Currently we are loading from Tema, we should go back to Atuabo on the 26th of this month. Today is 21^st, I think you have not written back to tell us that Atuabo is ready so we should move there. We are sticking to the 26th of this month deadline to return to Atuabo”, he mentioned.

Mr. Kumi added that “We haven’t said anywhere that we are very much aware of the National Security implications of not lifting LPG from Atuabo. And we are very responsible association and we don’t want to put this nation under any national security threat. So, you [NPA] should stop this propaganda and concentrate on doing proper regulatory works.

He also expressed concern about the monopoly being enjoyed Sage Petroleum at Atuabo, saying, “I think is about time we even look at the monopoly being enjoyed by Sage petroleum at Atuabo”.

Source: Joy Business

ALSO READ:

• LPG marketers boycott not targeted at Atuabo Gas – LPGMCs

• NPA engaged in ‘unfortunate and deliberate’ attempts to tarnish reputation of LPG refill stations…

In a statement issued by the Associations, they expressed deep concern over Abdul-Kudus’s recent remarks on Accra-based Adom FM, where he claimed that the government’s Cylinder Recirculation Model (CRM) was designed to eliminate cheating at LPG refill stations.

The Associations argue that these comments are misleading and serve to unjustly pit consumers against operators within the LPG sub-sector.

The LPG Marketers Association and GLIPOA emphasized that the CRM policy, introduced by the government to improve access to LPG by 50% by 2030, has nothing to do with allegations of cheating.

“If today he is stating the main objective is to eliminate cheating then the government and NPA have lied to all stakeholders,” they stated.

The associations pointed out that the Ghana Standard Authority (GSA), which is responsible for standardization and calibration, conducts regular inspections of the over 768 LPG refill stations nationwide.

They assert that there has been no report from the GSA indicating malpractice or cheating by these stations and challenge Abdul-Kudus to provide any evidence to support his claims.

The associations defended the integrity of the LPG sector, noting that each LPG station is equipped with calibrated and certified dispensers and weighing scales, inspected regularly by the GSA.

“Any customer who visits an LPG Retail Station can see for themselves the quantity of product dispensed into their cylinders. Also, for purposes of verifying the quantity dispensed, the cylinder can be weighed right in the presence of the customer,” the statement clarified.

In light of these facts, the LPG Marketers Association and GLIPOA are demanding a retraction of the statement made by Abdul-Kudus and a formal apology to both the Ghana Standard Authority and the owners of LPG refill stations.

While reiterating their support for the government’s CRM policy, the associations called for a level playing field for all stakeholders involved.

They urged the media to address what they described as misinformation spread by the NPA, stressing their commitment to protecting the reputation and interests of their members.

Read the attached statement below:

 PRESS RELEASE BY THE LPG MARKETERS’ ASSOCIATION AND GHANA LPG OPERATORS ASSOCIATION (GLIPOA)

RE: ‘CRM to eliminate cheating at the filling stations’ – Mohammed Abdul-Kudus of the NPA

On Tuesday 20^th August 2024, Mr Mohammed Abdul-Kudus, the Communications Manager of NPA, during an appearance on Accra-based Adom FM made the above statement in regard to the Government’s Cylinder Recirculation Model Policy.

The LPG Marketers Association and other stakeholders over the last couple of weeks have observed the National Petroleum Authority (NPA), the regulator for the downstream Petroleum sector officials making various allegations against the very sub-sector that has helped to increase consumption of LPG from 5,000Kg per annum in the 1990s to over 300,000,000kg as at end of 2023. These statements are unfortunate and deliberate to kick the consumers against the operators of LPG Refill stations.

In the first place Mr. Mohammed Abdul-Kudus as the Communication Manager knows that the Government’s Policy on CRM has nothing to do with cheating at the LPG Refill Stations. The CRM policy was introduced as part of the government’s plans to improve access to LPG by 50% by 2030. If today he is stating the main objective is to eliminate cheating then the government and NPA has lied to all stakeholders. His statement is unfortunate and upfront to Government Agency such as the Ghana Standard Authority (GSA).

The Ghana Standard Authority (GSA) is clothed with Standardisation and Calibration powers per the Act 1078. The GSA, on quarterly basis subject the over 768 LPG Refill Stations in Ghana to periodic inspection. The Association is not aware of any report from the GSA indicating that operators of LPG Refill stations are cheating the discerning customers. Mr Mohammed Abdul-Kudus must tell the whole world where he cited such a report.

Per the current operations of LPG stations which are open to the general public it is mind boggling for Mr Mohammed Abdul-Kudus, the Communications Manager of NPA to make such a statement on a radio station. Each LPG Retail station has Dispensers and Weighing Scales that are calibrated and certified by GSA and inspected regularly. Any customer who visits an LPG Retail Station can see for themselves the quantity of product dispensed into their cylinders. Also, for purposes of verifying the quantity dispensed the cylinder can be weighed right in the presence of the customer. If in the presence of a customer, the LPG Refill stations are cheating then what confidence should the customer have when a filled cylinder is sold to them from elsewhere?

The operators in the LPG Sub-Sector are law abiding persons with high level of integrity. The players have always placed the needs of the customer at the heart of every decision making. The LPG Sector has remained one of the least profitable sub-sector in the country.  Margins for operators for products lifted from BIDEC has remained the same for over 7years because we do not want the customer to suffer due to high prices of LPG.  Meanwhile within the same period, Government’s Levies, Taxes and NPA Margins have all be increased in many folds.

Lastly, the members of the LPG Marketers and the Dealers are not against the Government Policy on CRM. Rather, we demand a level playing ground for all stakeholders.

We therefore demand that Mr Mohammed Abdul-Kudus, the Communications Manager of the NPA, to retract the said statement and apologise to the Ghana Standard Authority and the owners of LPG Refill Stations.

By the:

LPG Marketing Companies Association of Ghana (LPGMC)

Ghana LPG Operators Association (GLIPGOA)

To: All Media Organisations

Source: Adomonline

READ ALSO:

• IEA calls for policy ensuring all gov’t appointees pay for electricity consumed
• LPG marketers boycott not targeted at Atuabo Gas – LPGMCs
• Producer Price Inflation shoots up to 29.1% in July 2024

Vice Chairman, Gabriel Kumi insists the directive to its members was to cease doing business with the two firms at the Tema depots and not Atuabo.

SAGE Petroleum and Blue Ocean who were previously supplying LPG to local marketing companies obtained permits from the regulator, National Petroleum Authority to operate bottling plants under the Cylinder Recirculation Model and begin filling cylinders.

However, the LPGMCs consider this inimical to the survival of indigenous business, thus started a boycott of the two firms on the 12^th of August 2024.

This has not gone down well with the National Petroleum Authority.

“You cannot block a service provider’s infrastructure, not to permit other people to go there to gain products,” Head of Gas Regulation at the NPA, Obed Kraine Boachie said in an interview.

“Atuabo is a strategic facility that allows us to evacuate LPG so the Gas Processing Plant can run. Once you stop the evacuation over there you create a national security issue”, he added.

But speaking on the Marketplace on JoyNews, Mr. Kumi accused the NPA of trying to press the panic button.

“The Atuabo Gas Processing Plant was shut down for maintenance work and LPGMCs are not allowed to load products from there until 26^th of August. We instructed our members not to load from the Tema Terminal”, Kumi explained.

“We are aware of the national security implications of not lifting gas from Atuabo. We are a responsible association and will not compromise national security”, he assured.

Mr. Kumi demanded fair regulation of the LPG market and kicked against what he describes as attempts to monopolise the industry.

The LPGMCs’ decision to boycott SAGE Petroleum and Blue Ocean is part of a broader initiative aimed at “protecting indigenous businesses, safeguarding over 10,000 Ghanaian jobs, and defending local investments exceeding $400 million made by Ghanaians over the past 30 years”.

Source: Joy Business

ALSO READ:

• Mustapha Hamid should apologise to us – LPG Marketers Association

• Eni Ghana workers suspect foul play in the unitisation of Afina project

The announcement was made in a letter to the Gas Tanker Drivers Association by LPGMC’s Chairman, Mallam Bukari Amadu.

In the letter, the LPGMCs stated that they will continue to engage with other Bulk Distribution Companies (BDCs) operating at these two depots until the close of business on Friday, August 9, 2024.

However, this provision strictly excludes any products owned by SAGE Petroleum and Blue Ocean.

Effective Monday, August 12, 2024, all LPGMCs will cease and desist from conducting any business with SAGE Petroleum and Blue Ocean at the Tema Quantum Terminal.

The Gas Tanker Drivers Association members are therefore strongly urged not to honour any invitations or orders for loading at these depots.

The LPGMCs’ decision is part of a broader initiative aimed at protecting indigenous businesses, safeguarding over 10,000 Ghanaian jobs, and defending local investments exceeding $400 million made by Ghanaians over the past 30 years.

The LPGMCs argue that these actions are necessary to protect against what they describe as “foreign aggression.”

The letter also highlighted the LPGMCs’ ongoing concerns with the regulatory body’s refusal to include their extensive distribution network of 800 gas stations in the Cylinder Recirculation Model (CRM).

Despite persistent requests, the regulator has denied the LPGMCs the opportunity to participate in the CRM program, which has fueled further dissatisfaction among the companies.

The LPGMCs are urging the Gas Tanker Drivers Association to ensure that these directives are strictly adhered to by all its members.

Source: Myjoyonline.com

ALSO READ:

• LPG Association challenges NPA boss over cylinder recirculation initiative
• Mustapha Hamid should apologise to us – LPG Marketers Association

Speaking on Adom FM’s morning show, Dwaso Nsem on Monday, Nana Amoasi VII said while the CRM is not inherently flawed, the transition was hurried, leading to current issues.

“The cylinder recirculation model is not a bad thing. It is also not new in the country. We practised it before using Coca-Cola bottles until we transitioned into gas stations. Now, because of explosions, we want to use the cylinder recirculation model. However, if we regulate it well, not just the filling of the gas but the transportation from the main depot and follow all the protocols—we wouldn’t be where we are today,”he said.

The IES Executive Director stressed that, proper regulation and enforcement of bylaws are crucial to preventing accidents.

He believes that, the assumption that switching to the CRM would automatically resolve safety issues was misguided.

Nana Amoasi VII also pointed out the possible lack of a transition plan and the importance of stakeholder engagement.

“The model cannot be the only answer to our problems. There must be regulations and a safe method of handling the issues. If the people involved do not accept it, your work becomes difficult. Transitions happen all the time, but when it comes to the energy domain, transition must happen naturally,” Nana Amoasi VII stated.

He called for a more measured approach, emphasizing that the CRM needs to be part of a broader strategy involving stringent safety regulations and effective stakeholder communication to ensure a smooth and safe transition.

Watch the video below:

READ ALSO:

• No LPG management system is accident-free – Gabriel Kumi
• Mustapha Hamid should apologise to us – LPG Marketers Association
• Ghana increases export of petroleum products to neighbouring countries

Speaking on Adom FM’s morning show, Dwaso Nsem on Monday, Vice President of the LPG Marketers Association of Ghana, Gabriel Kumi said Mr. Hamid’s claim is unfortunate.

He indicated that, they will never oppose an initiative which allows consumers to exchange empty cylinders for filled ones at designated points.

“We have worked with him, and as our boss, he should apologize. The lies he told were unnecessary. With his term ending in December, it would be most honourable for him to establish a good relationship with us before he leaves” he stated.

Mr Kumi further criticized the lack of a transition plan for the new model, pointing out that the government has asked them to create new exchange points amid a declining gas market.

He expressed concern that the CRM is being managed by foreign and semi-foreign companies, whereas the current 800 LPG retail stations in Ghana are run by indigenous people.

“They have chosen foreign companies over us and are trying to create the perception that our current model is not safe. All the countries he cited began with the cylinder recirculation from the start, so their citizens were not used to the other model. The NPA has aligned with these foreign companies.”

The LPG Marketers Association stressed the need for a fair and safe implementation of the CRM, insisting that no LPG management system is completely accident-free.

“We are not sabotaging the model. However, if anyone tells you that the cylinder recirculation method is safer than the current system, that person should be questioned. We are working with gas, and no system is accident-free. What you need to do as a regulator is to take measures to improve safety,” he said.

Watch the video below:

Speaking in an interview on Adom FM’s morning show, Dwaso Nsem Monday, Mr Kumi explained that, even with regulatory measures, the inherent risks associated with LPG handling cannot be entirely eliminated.

He noted that, the new 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 is not safer than the existing model.

“We are not sabotaging the model. However, if anyone tells you that the cylinder recirculation method is safer than the current system, that person should be questioned. We are working with gas, and no system is accident-free. What you need to do as a regulator is to take measures to improve safety,” he said.

Mr Kumi referenced a significant explosion in Kenya that occurred under a similar model, warning that Ghana could face similar dangers if safety measures are not rigorously enforced.

“Imagine we pile about 100 to 200 cylinders, and, God forbid, a fire breaks out. A 14.5 kg cylinder can cause devastation up to half a kilometer wide.”

Responding to sabotaging claims by the Chief Executive of the National Petroleum Authority (NPA), Dr. Mustafa Hamid, at the recent Ghana International Petroleum Conference (GhIPCon) that the LPG Marketing Companies Association opposes the model, Mr Kumi denied the allegations.

He recounted the disruptions caused when the government announced plans to introduce the CRM in 2018/2019, noting that the industry was initially against the model due to its implementation approach.

Despite their concerns, the government persisted with the plan into 2020 and 2021. The Association requested compensation to exit the business, but the government cited a lack of funds. A proposal to create a compensation fund was also rejected.

In a bid to find a compromise, the Association suggested building cages at the 800 LPG stations across the country to accommodate both filled and empty cylinders, allowing the two systems to operate concurrently. This proposal was also turned down by the government.

“There is no transition plan for the new model. They want us to create a new exchange point for the new mode. There is already a declining market in the gas business. And the cylinder recirculation is being run by foreign and semi foreign companies.

“The NPA have aligned with these foreign companies and they can’t stand the competition we are giving them,” he added.

Watch the video below:

READ ALSO:

• T-bills auction: Government misses target by GH¢1.44bn; interest rates remain steady
• LPG Association challenges NPA boss over cylinder recirculation initiative

According to its Vice President, Gabriel Kumi, this is preventing many Ghanaian consumers from consuming LPG.

“I’m sure you have been following the LPG Marketing Companies Association activities. For the past seven years consistently and persistently we have called on the government to remove the taxes on LPG because we believe it doesn’t make any sense to put taxes on LPG”, he stated on Upfront on Joy News.

This is a product countries like Côte d’Ivoire are subsidising to the tune of 20% to 25%. And in fact, when I spoke to a colleague a few weeks ago he couldn’t believe LPG is expensive in Ghana. He said their association has written to their government to even increase the subsidies on LPG, while Ghana’s LPG currently is one of the highest in the world”, he added.

To him, the government has failed to live by its promises, saying “In 2019 -2020, the government set an objective to increase consumption of LPG from 25% penetration level to 50% by the year 2030 but so far it has failed”.

“We applauded the government and said look this is a laudable objective to set but you can’t eat your cake and have it. LPG is a product with a very high sensitivity. It’s highly price sensitive such that any pesewa put on the price of the product goes a long way to reduce consumption”, Mr. Kumi mentioned.

“So, when that objective was set, that was when the call for us to take off the taxes on LPG really began because we called the government and said look yes you have set such an objective but it will be counterproductive if at the same time, you are putting taxes on the product which you want to increase its consumption”, he added.

 He concluded that LPG is not a luxury product nor is it for the bourgeoisie, but for the ordinary Ghanaians.

ALSO READ:

• GWR: Man on Techiman to Accra walk-a-thon debunks news of collapsing
• Amerado falls after stage collapses during performance [Video]
• Woman allegedly brings dead man to bank to take out a loan

According to the Association, it is of the firm conviction that this will reduce the price of the product on the market which will in turn boost the consumption level.

This comes after the National Petroleum Authority (NPA) reviewed the mode of Liquefied Petroleum Gas (LPG) importation to Ghana, by making it go through an open competitive bidding process.

Reacting to this, Vice President of LPG Marketers Association of Ghana, Gabriel Kumi, said when this policy is properly executed, it will reduce the cost of LPG.

“We as an association have consistently called on government and the NPA to ensure that the price of LPG comes down, so that the ordinary Ghanaian can use LPG. We can all benefit from the enormous benefits that come with consuming more LPG,” he said.

He added that the consumption of LPG has declined significantly over the years, hence, this new move will help increase consumption.

Meanwhile, the National Petroleum Authority says the decision to open a Competitive Tender for LPG imports into the country is also to reduce cost and ensure efficiency.

The authority added that the proposal for the open competitive tenders was approved after consultation with the Bulk Oil Distribution Companies with the majority supporting it.

The authority also indicated that the quantity being tendered per month represents about 70% of Ghana’s monthly LPG consumption with the Ghana National Gas Company supplying the remainder.

ALSO READ:

• Petrol, Diesel and LPG prices to go up marginally from February 1, 2024

• NPA to label fuel pumps based on octane grades

Urgently addressing the demands of the tanker drivers’ union is the Association’s plea to the government.

Both the Petroleum Tanker Drivers and LPG Drivers have decided to initiate an industrial action starting today, June 26, 2023.

Their aim is to emphasize the need for road rehabilitation in key petroleum regions such as Tema, Takoradi, Kumasi, and Buipe. Despite their attempts to engage the Ministry of Transport, the drivers claim their concerns have been overlooked.

In an interview with Joy Business, Gabriel Kumi, Vice President of the LPG Marketers Association, asserted the legitimacy of the Tanker Drivers’ Union demands and stressed the necessity of addressing them promptly.

The impending strike by the Tanker Drivers Association poses a significant threat to our nation and economy. While it will undoubtedly disrupt the operations of LPG Marketing Companies and Oil Marketing Companies, we must also acknowledge the validity of their grievances.

“The condition of the roads in these areas is utterly deplorable, and it is a legitimate concern they are raising. Urgently attending to their needs will enable our drivers to resume their duties,” Kumi commented.

Furthermore, Kumi cautioned that the poor road conditions in these regions could lead to catastrophic accidents and explosions.

“Already, the roads are in an appalling state. Just imagine the consequences if, for instance, an LPG tanker were to be involved in an accident within this vicinity, leading to a devastating explosion. Lives would be lost, and numerous properties would be at risk,” he warned.

“We implore the government to swiftly address the drivers’ needs so they can return to work and continue supplying the essential fuel required to power our nation. With the economy already facing challenges, it is crucial to avoid any fuel shortages that could further negatively impact the economy,” Kumi added.

ALSO READ:

• 1D1F: APPEB launches new standard LPG cylinders

• LPG Marketers Association calls for removal of taxes and levies

This is contained in a letter addressed to the Chairman of the LPG Marketers Association of Ghana by the National Petroleum Authority (NPA) on August 3, 2022.

According to the statement signed by the Chief Executive of the NPA, Dr. Mustapha Abdul-Hamid: “We are pleased to inform you that Cabinet at its 35th Sitting, held on August 3rd 2022, has granted a special dispensation to allow the completion of the construction of stranded LPG stations across the country, that were affected by the ban on the construction and operation of new LPG facilities in 2017.”

The NPA therefore requested, “all OMCs/ LPGMCs who were affected by this directive to resubmit their applications to the Authority.”

The Liquified Petroleum Gas (LPG) Marketers Association of Ghana, the Ghana LPG Operators Association of Ghana and the Tanker Drivers Association of Ghana declared an industrial strike action in the course of the week.

The striking groups raised a number of issues, including the shutdown of some stations as a result of the Atomic Junction gas explosion five years ago. They are asking the government to immediately lift the ban.

According to them, government’s refusal to re-open some gas stations that were closed after the 2017 gas explosion has affected its members, hence the need to embark on the strike.

Meanwhile, the strike has had an impact on LPG customers, who have been denied access to the product due to scarcity. This has forced some consumers to switch to charcoal.