Dr. Mustapha Abdul-Hamid, the Chief Executive of the National Petroleum Authority (NPA), has called on LPG marketing companies to reconsider their opposition to the cylinder recirculation model (CRM) and embrace the policy.
He highlighted that CRM is already being implemented in several West African countries, including Cote d’Ivoire, Togo, Burkina Faso, and Senegal, and stressed that Ghana should not lag behind.
Speaking at the opening of the 2024 Ghana International Petroleum Conference (GhIPCon) in Accra, Dr. Abdul-Hamid acknowledged the aggressive advertisements run by LPG marketing companies promoting the current LPG filling station concept. He urged these companies to adapt to the CRM policy, emphasizing its benefits for safety and convenience in LPG distribution.
“I urge you to reassess your opposition to the CRM policy. Very few countries still adopt the filling station concept for LPG distribution. Throughout the West African sub-region, from Cote d’Ivoire to Togo, the CRM model is in use. Ghana cannot afford to lag behind; it is important that we catch up with modern trends,” Dr. Abdul-Hamid stated.
He also noted that CRM has the potential to create more jobs along the value chain, including operations in LPG bottling plants, depots, exchange points, and the transportation of filled cylinders.
The two-day conference, organized by the NPA in collaboration with the Chamber of Bulk Oil Distributors (CBOD), the Association of Oil Marketing Companies (AOMC), and the Ministry of Energy, focused on “The Petroleum Downstream: Building a Future for Growth, Efficiency, and Sustainability.”
Dr. Abdul-Hamid highlighted the growth of the petroleum downstream industry, noting its significant contribution to the economy. In 2023, the sector had a monetary value of over GHS 71 billion, representing about 8.4% of the country’s GDP. Over the past seven years, the industry has averaged an annual value of over GHS 35 billion.
He mentioned that neighboring countries such as Mali, Niger, Cote d’Ivoire, Togo, and Burkina Faso have been importing petroleum products from Ghana, with re-exported and transited volumes totaling 385,154,100 liters in 2023. The increase in exports is attributed to the NPA’s efforts to curb illicit fuel activities through intensified collaboration with the navy, marine police, and immigration authorities.
Dr. Abdul-Hamid also announced that Senegal and Gambia have begun importing petroleum products from Ghana.
In a speech read on behalf of Vice President Dr. Mahamudu Bawumia by the Minister of State at the Ministry of Energy, Mr. Herbert Krapa, significant progress was noted towards an efficient and sustainable energy industry since the last GhIPCon in 2022. The government has introduced and implemented the Gold for Oil Programme, reducing the demand for forex reserves needed for petroleum product imports, increasing local product supply volumes, and reducing premiums, leading to a relative reduction in petroleum product prices.
Additionally, the Vice President highlighted the establishment of the Petroleum Hub Development Corporation’s Board and a $12 billion agreement with the TCP-UIC Consortium for the first phase of the Petroleum Hub project in Jomoro, Western Region. He also noted the increase in LPG accessibility from 25% in 2020 to 40% by the end of 2023, supported by the National LPG Promotion Programme.
Dr. Patrick Ofori, CEO of the Chamber of Bulk Oil Distributors, and Dr. Riverson Oppong, CEO of the Association of Oil Marketing Companies, reaffirmed their commitment to collaborating with the NPA to promote the growth and sustainability of the petroleum downstream industry.
