The National Petroleum Authority (NPA) has announced the initiation of the first phase of the government’s nationwide Cylinder Recirculation Model (CRM) policy in September 2023, commencing with the Greater Accra and Ashanti Regions. Subsequent phases will gradually extend the program to Ghana’s remaining 14 regions.
Curtis Perry Okudzeto, Deputy Chief Executive Officer of NPA, officially disclosed the implementation date during a briefing with Ghanaian journalists. He explained that this decision follows the completion of four LPG bottling plants specifically constructed for the CRM program.
Mr. Okudzeto provided details of these developments, noting that GOIL Plc has erected two LPG Bottling Plants in Tema and Kumasi, capable of filling 23,000 and 7,600 cylinders per day, respectively. Furthermore, Blue Ocean and New Gas Plants have capacities to fill 24,000 and 20,000 cylinders, respectively.
In addition to these bottling plants, Mr. Okudzeto mentioned that the state-owned Ghana Cylinder Manufacturing Company (GCMCL), APPEB, and Sigma are also prepared to produce cylinders for the CRM program.
The NPA has completed all the necessary regulatory groundwork to ensure the smooth implementation of the program starting in September.
Under the prevailing system, LPG consumers visit retail outlets to refill their cylinders based on their requirements. However, the CRM policy will introduce pre-filled cylinders of five kilograms and above, distributed from bottling plants to cylinder exchange points. Consumers will exchange their empty cylinders for filled ones at these exchange points, based on their preferred LPG quantity.
Mr. Perry Okudzeto clarified, stating, “Consumers will no longer purchase LPG cylinders. All you need to do is identify an exchange point and register as a client of that exchange point. We advise that consumers take proper care of the cylinders.”
Contrary to concerns expressed by LPG Marketing Companies regarding potential job losses and compensation for investments in Bulk Road Vehicles (BRVs), Mr. Okudzeto explained that BRVs would still be utilized to transport LPG to specific consumers and bottling plants.
The CRM policy will operate concurrently with the existing system until full nationwide implementation.
Regarding the transition timeline, Mr. Okudzeto mentioned that discussions are ongoing with stakeholders to determine the exact duration, with suggestions ranging from three to ten years.
He encouraged LPG Marketing Companies to embrace the program, emphasizing that it could potentially increase their revenue. New job opportunities will emerge, with the NPA planning to issue new licenses for the transportation of filled LPG cylinders to exchange points.
Concerning pricing, Mr. Okudzeto assured that the NPA would work to prevent an increase in the cost of LPG and is in discussions with the Ministry of Finance to consider reducing taxes on LPG.
The primary objective of the CRM is to achieve 50% LPG consumption by 2030, emphasizing access to safe, clean, and environmentally friendly fuel. The NPA believes that the CRM represents a safer alternative to the current system.