The Herald, has been let in on plans by the National Petroleum Authority (NPA) to implement the Cylinder Recirculation Model (CRM) Programme next month.
At the heart of the programme, The Herald has picked up is the NPA’s agenda to stump out LPG filling stations pumping gas to consumers far below what they pay for.
The NPA, is sure that the various bottling plants to be established across the country, will create a stiff competition amongst the various companies, hence owners will have no reason to shortchange consumers by selling LGP below what was paid for.
LPG consumers have oftentimes clashed with operators of filling stations because of disagreements over the quantity of gas pumped into their cylinders.
While some felt cheated because they suspected the operators had adjusted their scales, others have been of the view that most operators are simply pumping air into the cylinders in the name of LPG. Therefore, not getting value for their money.
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To address this and more, The Herald is informed that the plan by the NPA as part of the CRM policy, will ensure that the various bottling plants already in Accra and Kumasi, are fitted with automated machines to pump the required quantity of gas into the cylinders to be purchased by consumers.
The NPA believes that if the automation mechanism is well implemented, the existing gas filling stations which are to remain in operation until the whole country sees the CRM takes full effect, will be forced to comply by also pumping the right quantities of gas consumers pay for.
The Herald, has also learnt that discussions are underway for price variations in the type of gas sold across the country since some types, particularly those produced in Ghana, will require a particular amount of gas to be pumped for space in the cylinders. This will mean that consumers in certain parts of the country, will pay less compared to the price of imported gas.
Already, some four companies are ready with the LPG bottling facilities established in Accra and Kumasi to ensure the certified cylinders filled with gas are made available to consumers upon demand when the policy starts rolling next month.
The four companies, include Blue Ocean, New Gas, Goil and one other.
This came to light during The Herald’s interaction with the Deputy Chief Executive of NPA, Perry Okudzeto. The NPA, he said, cannot wait any longer.
He spoke to The Herald in the wake of opposition by the Liquefied Petroleum Gas (LPG) Marketers Association. They had kicked against plans by the NPA to implement the Cylinder Re-circulation Model, arguing that the September date is too early for the policy’s implementation and could lead to misunderstandings.
The association had insisted on the need for intensified public education before a complete roll-out.
But, Mr Okudzeto, insisted that the consultations are still ongoing and that the NPA is ready to allow the existing LPG stations to continue with their operations until the Cylinder Re-circulation Model takes full shape. This, he said the NPA, can do at least for two years.
It is, therefore, not true that the stakeholder engagement and consultation had been missing in the ongoing discussion to rollout the policy which has been on table since 2013 and continued under Alhassan Tampuli Sulemana, as NPA boss from 2017, until he left office to become the MP for the Gushegu Constituency January 2021.
Gabriel Kumi, the Vice President of the LPG Marketers Association, had claimed on Eyewitness Newson Citi FM that the confusion surrounding the model indicates that the NPA should proceed cautiously.
“NPA has set next month for the implementation, and so we have less than a month and the public confusion indicates that consumers are not ready and so there is a need to educate the public on the model so that we don’t confuse the public in the roll-out of the model.”
“The current system is so entrenched that if you want to introduce a new system, you just don’t throw the old one out and suddenly introduce the new one, we have to do that slowly. Our initial discussion was that we should buy back all cylinders in the system because there are a lot of them out there that are obsolete and need to be changed, and it will be difficult to tell them to simply discard them and get new ones in anticipation of the model’s roll-out.”
“Not until last week that the NPA had a press conference, I did not know the Ghana Card was going to be used in the policy’s implementation. There is little education on this policy, and so we have to take our time to ensure the people understand the policy before it is implemented, and we can even give ourselves up until January 2024 to roll it out,” Mr. Kumi further lamented.
Earlier, the Deputy Chief Executive Officer of the Authority, said all is set to roll out the programme next month.
He said under the CRM, residents of Accra and other selected parts of the country, do not have to own a cylinder to use Liquefied Petroleum Gas (LPG) for domestic and commercial activities.
“Filled LPG cylinders will be kept at exchange points for customers to pay for the content and pick up the filled cylinders after registering with their National Identity Card”.
The implementation of the CRM, he said, would be spearheaded by the NPA and its partners under the supervision of the Ministry of Energy.
Briefing the media on the planned implementation of the CRM in Accra, Mr Okudzeto, said the programme would be rolled out in September in Accra and Kumasi and would gradually spread across the country.
He said the CRM would run side by side with the current distribution model until it was phased out as a 50-member committee was working on the CRM.
He said the LPG Marketing Companies had representation on the committee and their inputs had been factored into the framework.
“All industry players have been engaged, their ideas have been taken on board and the framework has been designed with their input and are ready to offer their support to ensure the success of the project,” he stressed.
Mr Okudzeto, said the implementation of the CRM was to ensure that at least 50 per cent of Ghanaians have access to safe, clean and environmentally friendly LPG by 2030.
“It is also meant to improve access to LPG, improve safety in the distribution of LPG and increase adoption of LPG.
“Additionally, it is a policy shift to stop the unnecessary loss of lives and property as well as gas filling stations, mostly due to human error.”
