The LPG Marketers Association (LPGMC) have issued a warning that the mismanagement of the Cylinder Recirculation Model (CRM) by the National Petroleum Authority may put over 10,000 LPG sector jobs at risk.
In a press release, the LPGMC, the Ghana LPG Operators Association (GLIPGOA) and the Gas Tanker Drivers Association (GTDA) voiced serious concern about what they view as the NPA’s unfair treatment of local LPG businesses.
They argued that the NPA’s decision to exclude them from the final phase of the CRM implementation, while allegedly favouring foreign and semi-foreign companies, endangers the livelihoods of thousands of Ghanaians.
“If cooperation in our regulator’s view means we allow an industry built by indigenous Ghanaians to be handed over to foreign and semi-foreign companies, then we cannot cooperate,” the associations stated.
They emphasised that these actions could wipe out over $400 million in investments by local businesses and lead to significant job losses, potentially leaving more than 10,000 Ghanaians unemployed.
The groups criticised the NPA for its lack of transparency and consultation, noting that reports from CRM pilot projects—carried out at stations voluntarily provided by their members—have not been shared with industry stakeholders.
They urged the NPA to adopt a fairer approach, ensuring that all LPG industry players, including traditional marketers, are treated equitably during the CRM rollout.
More on Cylinder Recirculation Model(CRM)
The Cylinder Recirculation Model (CRM) is a distribution system where consumers exchange empty LPG cylinders for filled ones at designated points.
The empty cylinders are then sent to bottling plants to be refilled and redistributed.
To use the CRM, consumers must first register with an exchange point in their area using a Ghana Card to create a tracking database for the cylinders.
If a Ghana Card is unavailable, other valid national IDs such as a voter’s ID, NHIS Card, driver’s license, or passport can be used.
The authorisation which went into effect on Friday, September 1, 2023, saw the NPA authorizing selected petroleum marketing companies to distribute filled LPG cylinders under the Cylinder Recirculation Model (CRM).
This approval permits bottling plants to refill cylinders and sell them to the public through exchange points.