Gas marketing companies kick against new LPG policy

File: LPG cylinders distributed to rural folks by the government in 2016[/caption] Liquefied Petroleum Gas (LPG) marketing companies in the country have kicked against a new policy that would ensure distribution of LPG to homes through pipelines. Implementation of the policy will mean gas filling stations will no longer be allowed to refill gas cylinders at their stations. According to the National Petroleum Authority, the policy would increase rural penetration of gas and help minimise the recent gas explosions at filling stations across the country. But the LPG Marketing Companies Association of Ghana have explained the new policy is a recipe for economic chaos, noting it is going to collapse local businesses. It has consequently written to the Ministry of Energy and Vice President Mahamudu Bawumia to state why it would not make economical sense to implement such a policy. “The cylinder recirculation module, if implemented, will eventually collapse the dispensing (refilling) stations, and that will lead to serious economic chaos. “Huge investments would be lost. Over 6000 people will be jobless, there will be no use for the LPG trucks and over 700 drivers and mates will be rendered redundant,” it said in its letter. The association said local entrepreneurs have over the years pumped millions of cedis into the sector for which reason it will not be appropriate for the NPA to just snap them out of business. “An estimated amount of GHS 700,000 on the average is needed to establish a Dispensing (Refilling) station. It is very clear that a lot of investments have been sunk into this sector by indigenous Ghanaian entrepreneurs and the investment continues to grow and deepens” it said. Meanwhile, tanker drivers have also embarked on a sit down strike to kick against the implementation of the policy claiming the move is a deliberate attempt to make them jobless.

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By P.D Wedam]]>