NPA Urges Reconsideration of Opposition to Cylinder Recirculation Model
The National Petroleum Authority (NPA) has made an appeal to stakeholders in the petroleum downstream sector, particularly the Liquefied Petroleum Gas (LPG) Marketers Association, urging them to reassess their opposition to the newly introduced Cylinder Recirculation Model.
This initiative, championed by NPA Chief Executive Dr. Mustapha Abdul-Hamid, is gaining traction across the West African sub-region and is hailed as the premier distribution policy for domestic LPG use.
Addressing delegates at the Ghana International Petroleum Conference (GhIPCON) in Accra, Dr. Abdul-Hamid underscored the necessity for Ghana to modernize its LPG distribution system.
He remarked, “I urge you to reassess your opposition to the Cylinder Recirculation Model because we have to move with the modern times and Ghana cannot be left out. When you look around us, all the West African nations surrounding us, Togo, Burkina Faso, Benin, and others, are all adopting the Cylinder Recirculation Model as the safest way of distributing LPG to homes. So we as a country must move with the times.”
Dr. Abdul-Hamid highlighted that this model has not only proven its effectiveness but also its potential to generate employment opportunities, particularly for the youth.
“It will create a lot of job opportunities for our teeming youth rather than the filling station concept,” he asserted, pointing to the value chain opportunities in distribution and circulation channels.
The Cylinder Recirculation Model, already implemented in parts of Accra, eliminates the need for consumers to own their LPG cylinders. Instead, filled cylinders will be available at exchange points, where customers can purchase the gas content and obtain a filled cylinder upon presenting their National Identity Card.
Despite its advantages, the policy has encountered resistance from some industry stakeholders.
In an effort to address these concerns, Minister of State at the Ministry of Energy, Herbert Krappa, affirmed the government’s commitment to continuous dialogue with all relevant parties. He stated that dealer input is crucial for refining and enhancing the policy.
This year’s GHIPCON, themed “Petroleum Downstream: Building a Future for Growth, Efficiency, and Sustainability,” focused on fostering growth and efficiency within Ghana’s petroleum sector.
The conference served as a platform for discussing innovative strategies and policies aimed at propelling the sector forward.
