The LPG Marketing Companies Association of Ghana has responded to the claims made by the Chief Executive of the National Petroleum Authority (NPA), Hon. Dr. Mustafa Hamid, at the recent Ghana International Petroleum Conference (GhIPCon).
They averred that the assertion that we oppose the Cylinder Recirculation Model (CRM) is categorically false.
According to them, they have engaged in numerous discussions with the NPA and have mutually agreed that both the refilling and CRM systems must operate side by side.
“Our advertisements are solely aimed at promoting LPG usage to protect our environment and promote indigenous businesses, not to oppose CRM. There are clear differences between opposition and competition in our humble opinion. Our requests to mount cages in all our LPG stations across the country to support the policy by distributing CRM cylinders were vehemently turned down by the NPA.”
They indicated that they found it very ironic and disingenuous that the CEO would turn around and accuse us of being backward-looking and not wanting change.
“We take serious exception to that derogatory statement.2. Costs of Change: While we acknowledge the necessity for change, it must be recognized that such transitions always come with significant costs, and we must be prepared to pay for these costs.”
The LPG Marketing Companies Association and LPG Retailers Association have invested over $400 million in the industry, with around 60% of this investment financed through bank loans.
These substantial investments, made by indigenous Ghanaians over the past 25-30 years, cannot be sacrificed just on the altar of change.
Their sector is a critical provider of employment for over 10,000 Ghanaians, including 8,000 direct and 2,000 indirect jobs.
“We are proud to be the only industry wholly owned and operated by indigenous Ghanaians in Ghana. We are yet to be told the exact number of jobs that CRM could potentially create, and it would benefit us all if the NPA could inform Ghanaians how many jobs CRM has created over the past year of its launch. Simply claiming that CRM will generate ‘Aboboyaa’ jobs is insufficient, lacks transparency and authenticity, and can only have propaganda and populist value”
The Association noted that Ghana, the star of Africa, should rather aim to perfect its existing system for others to emulate rather than blindly and unnecessarily following trends. Change must be managed carefully, taking into account our unique circumstances to prevent adverse outcomes.
“We strongly urge the CEO of NPA, Hon. Dr. Mustafa Abdul Hamid, to desist from making inflammatory and derogatory remarks that undermine and incite the public against our association. It is imperative for the NPA to maintain neutrality and fulfil its role strictly as a regulator. The use of funds generated by members of our association to support and promote foreign and semi-foreign entities at the expense of indigenous Ghanaian businesses is unjust, unnationalistic, and highly unacceptable.”
They also noted that, Taxpayer funds should not be diverted to support and advertise for private bottling companies that have the financial means to promote their own businesses.
They reiterated their agreement with the NPA that both refilling and CRM systems must coexist peacefully and called on the NPA to uphold its regulatory role with impartiality and ensure a fair and balanced approach for all stakeholders in the industry.
