Expect reduction in LPG prices – Poku predicts as he lauds NPA for innovation

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The Executive Director of the Institute for Energy Policies and Research (INSTEPR), Kwadwo Nsafoah Poku, has lauded the management of the National Petroleum Authority (NPA) for their leadership and innovation in seeing to the implementation of the cylinder recirculation model (CRM).

He expressed belief that there will soon be reduction in LPG prices if the policies by the Authority are anything to go by.

“Led by Dr. Mustapha Hamid, the NPA management has introduced an international tender for LPG importation,” he wrote on Friday, February 2.

“This tendering process has introduced competition in the pricing of LPG, and consumers can expect to see a gradual reduction in LPG price in the coming months.”

He admitted earlier challenges to CRM following its introduction after the gas explosion at Atomic Junction in Accra in 2017.

“A key challenge has been finding ways to implement this capital-intensive policy while ensuring that LPG remains affordable for the average household.

“Under the CRM, customers are no longer required to purchase gas cylinders, as they do not own them.

“Instead, cylinders of various sizes are already filled with LPG, and customers exchange their empty cylinders for filled ones.”

He called for an “urgent need to examine and reform the petroleum downstream value chain”.

“With private sector participation in this sector for over 15 years, it is crucial to assess progress and plan for the future.”

A key decision Mr Nsafoah Poku noted is the revamp of the Tema Oil Refinery (TOR).

“Ghana now boasts of private refineries, and if the government can establish a roadmap for the Tema Oil Refinery, we can have comprehensive discussions about our fuel security and affordability in the coming years.”