The LPG Marketers Association (LPGMA) has insisted on its members running their operations alongside Cylinder Recirculation Module (CRM) systems to engender competition and enable the recouping of investments made.
According to the association, this has been their stance in all engagements with the National Petroleum Authority (NPA).
In a statement issued by the Association and signed by its Vice-President, Mr. Gabriel Kumi, the LPGMA clarified that they are not opposed to CRM.
“There are clear differences between opposition and competition in our humble opinion,” Mr. Kumi said.
He explained that their decision to operate alongside CRM has been misinterpreted as opposition to the CRM.
The association expressed surprise at the misinterpretation, stating that their offer to mount cages in all LPG stations across the country to support the CRM policy by distributing CRM cylinders was turned down by the NPA.
Mr. Kumi argued that operating alongside CRM would foster competition in the industry while enabling members to recoup their investments, which total over $400 million.
Mr. Kumi acknowledged that transitioning from refilling to CRM would be costly and emphasized the need for transparency regarding the potential job creation of CRM.
He pointed out that no country with a well-established, regulated, robust, and entrenched LPG distribution network has abandoned it in favor of CRM without due process and adequate compensation to indigenous investors.
He cited Colombia, which provided full compensation to its citizens during the transition to CRM, and Nigeria, which is moving away from CRM to refilling plants despite initially starting with a dual system.
The statement noted that the current refilling system provides over 10,000 jobs, including 8,000 direct and 2,000 indirect positions.
Mr. Kumi questioned the job creation claims made by the NPA regarding CRM, stating, “We are yet to be told the exact number of jobs that CRM could potentially create, and it will do all of us a lot of good if NPA could tell Ghanaians how many jobs CRM has created over the past year of its launch.”
He added, “Simply claiming that CRM will generate ‘Aboboyaa’ jobs is insufficient, lacks transparency and authenticity, and can only have propaganda and a populist value.”
The LPGMA called on the NPA to uphold its regulatory role with impartiality and ensure a fair and balanced approach for all stakeholders in the industry.
