Cylinder Recirculation Model Is a Misdirected Policy – LPG Operators

The Liquefied Petroleum Gas (LPG) Operators Association has opposed the Cylinder Recirculation Model introduced by the National Petroleum Authority (NPA).

The LPG operators have described the policy as misdirected from the outset.

Nanaba Collins, the National Organizer of the LPG Operators Association, said, “before the implementation of the policy, there was something called the Rural LPG Promoters Program. The aim was to ensure that those in rural areas would have access to gas, and in some cases, the gas would be provided for free. However, this did not go as planned, and we opposed it. Those of us in the cities knew that the prices of gas would increase as a result, which is why we are saying the policy is misdirected.”

Nanaba Collins emphasized that the policy will not benefit Ghanaians in any way.

“Ghana, with all due respect, is not a greenfield site to accept a new gas model. We have already passed that stage. For nearly 30 years, Ghanaians have expressed their preference for the traditional distribution system,” he told Kwame Tanko on the Lawson TV/Radio ‘Ghana Se Sen’ Morning Show.

He lamented that ”the cylinders that have already been filled are priced at a fixed rate. If consumers go to refilling stations and find the prices have increased, what will they do?”

He revealed that consumers who bring their own cylinders have a set price to pay, while those who do not bring cylinders pay GHS 920.

In 2023, the National Petroleum Authority (NPA) announced plans to roll out the much-awaited cylinder recirculation model.

The cylinder recirculation model is an LPG marketing system that involves filling LPG cylinders at large refilling plants, which are then distributed to consumers at specialized retail outlets known as exchange points.

With this model, consumers can exchange their empty cylinders for a filled one at an exchange point.