Gov’t to re-introduce Cylinder Recirculation Module in early 2018

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All things being equal, the government will reintroduce the LPG Cylinder Recirculation Module beginning early 2018, BusinessWeek has reliably gathered. The implementation of the module under the National LPG policy was suspended last year during public sensitization stages.

Sources from the Ministry of Energy have hinted that the Ministry together with other stakeholders have been trying to iron out their differences in order to clarify the thorny issues that have held back the roll out of the programme.

According to the Acting Chief Director at the Ministry of Energy, Lawrence Apaalse, the policy will be reintroduced by the end of this year for full implementation to start in 2018.”

The policy which suffered some setbacks during the sensitization period by the National Petroleum Authority (NPA) in an attempt to reintroduce the recirculation Programme, is undergoing some reforms to satisfy concerns of stakeholders.

The Association of Gas Tanker Drivers hinted of a nationwide strike last month if the National Petroleum Authority (NPA) failed to withdraw the Cylinder Recirculation Module because they believe the implementation of the policy will throw them out of business and collapse all gas stations in the country. And this led to its suspension for further consultations.

To that effect, the Acting Chief Director of the Ministry signed a letter which read in part that, “We have taken note of the progress made so far by the Ministerial sub-committee from under the NPA to review the above policy. We have also taken note of the challenges faced by the sub-committee in the completion of its work as well as the concerns raised by LPGMCs and Tanker Drivers’ Union on the policy. In view of the above, the Ministry wishes to recall the draft National LPG policy for further consultations with all relevant stakeholders especially LPGMCs and Tanker Drivers.”

Despite the setback, government has set up committees to reassess and repackage the policy for reintroduction beginning 2018 fiscal year. A Deputy Director in Charge of Petroleum down Stream, Alhaji Nuhu Abeka, also confirmed to Business Week that the concerns have been taken onboard while efforts are being made for the reintroduction of the policy by the end of the year 2017.

The Ministry of Energy drafted a National LPG policy in the year 2014. The goal of this policy was to ensure that at least 50% of Ghanaians have access to safe and environmentally friendly LPG for domestic, commercial and industrial usage by the year 2020.

The objectives of the policy were; to develop a safe and standard market based structure for LPG and use the cylinder recirculation model as the basis for marketing domestic LPG; to enhance the capacity of existing regulatory institutions in order to meet the regulatory requirements of the new market structure.

It was also meant to ensure the existence of robust and standard Health Safety and Environmental practices in the production, marketing and consumption of LPG; to promote local participation and ensure Ghanaian investment in the LPG sub sector; and to ensure the sustainability of the new market structure.

Source: Clement Akoloh

 

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