Business News of Thu, 7 Jun 20180
Cylinder Recirculation: No cause for alarm - NPA tells LPG marketers
The National Petroleum Authority (NPA) Chief Executive Officer, Hassan Tampuli, has played down the argument that implementation of the Cylinder Recirculation Model (CRM) will cause some businesses within the LPG value chain – specifically those on the marketing and retail sides – to shut down.
Addressing a sensitisation workshop for journalists in Accra, he was emphatic that the CRM policy rather revolves around the active participation of such businesses while assuring that non-Ghanaian firms cannot operate under the new model.
“The Cylinder Recirculation Model revolves around LPG marketers; so, when we hear concerns about job-losses, obviously, the facts do not support that conclusion.
“We are minded by the local content law which stipulates that a venture like this one should be fully reserved for Ghanaian equity participation; non-Ghanaians will not be allowed to operate under the model,” he said.
Following a fire outbreak at Atomic Junction last year, and considering similar preceding incidents, the government announced the introduction of the cylinder recirculation model.
Apart from safeguarding the public from such incidents, the CRM is also a sustainable approach to increase access and consumption of LPG in the country from the current 23 percent to 50 percent by 2033.
In the course of stakeholder deliberations and negotiations to come out with an implementation plan for the exercise, some industry players opted against it – saying the model will cause them to lose their investments in the industry.
But the NPA insists that implementation of the CRM will be the surest way of facilitating access to LPG products in a more organised and environmentally-safe manner.
Hassan Tampuli noted: “We can’t leave the safety, health and security of the public to the goodness of somebody, hence the need to put structures in place; systems will guide the process going forward.
“We need to give a chance for the policy to work and to see how it solves the peculiar needs of the industry and consumers as a whole.”
The NPA boss further stated that his outfit is open to suggestions and ideas from all stakeholders of the LPG sector to help in the smooth implementation of CRM.
“The document is not cast in concrete, it is open to new ideas and contributions from concerned stakeholders as it seeks to roll out a model that will suit demands of the market and be able to stand the test of time,” he noted.
The media sensitisation workshop was to help build the capacity of journalists to foster effective and accurate reportage that will enable the public to appreciate key elements of the CRM and also cure potential misinformation.
Esther Arku, Chief Inspector at the NPA, in her presentation indicated that the CRM is an international best practice, “and that is what we are looking at now, even though the current approach has been brought far.
“The whole exercise is to increase accessibility, ensure value for money and improve environmental safety standards. Ultimately, it will enhance investor confidence in the LPG industry and also maintain and protect local jobs within the value chain,” she added.