Cylinder recirculation model creating more investment opportunities, jobs — NPA Boss

The Chief Executive Officer (CEO) of the National Petroleum Authority (NPA), Dr Mustapha Abdul-Hamid, says the cylinder recirculation model (CRM) is allowing entrepreneurs with limited capital to invest in the liquefied petroleum gas (LPG) distribution chain.


He said unlike the traditional LPG distribution system, which required huge capital to establish LPG filling stations and related distribution costs, little investment was needed to set up LPG depots and exchange points under the CRM.At this year’s NPA’s Consumer Week Celebrations in Koforidua in the Eastern Regional last Thursday, the NPA boss said the CRM would also create more jobs for the youth at the LPG depots, exchange points and transportation of cylinders.

The occasion, which was preceded by CRM and safe LPG educational campaign, was held on the theme: "CRM: Making LPG accessible to all in a safe and efficient manner". It was graced by the Omanhene of the New Juaben Traditional Area, Daasebre Kwaku Boateng III.

He said the exchange points would be community-based to prevent consumers from travelling long distances to buy LPG. The NPA boss, who is also the President of the African Refiners and Distributors Association (ARDA), said people who owned land or students with limited capital could use their parents' land to establish LPG depots for exchange points.

Besides, he said, people could procure vehicles to engage in the transmission of filled cylinders to customers.

Dr Abdul-Hamid said the authority was engaging with the government to reduce taxes on LPG to make it affordable, accessible and available to the majority of Ghanaians. The target, he said, was to reach 50 per cent LPG penetration in the country by 2030.

Dr Abdul-Hamid, who described CRM as a game-changer, appealed to the public to embrace CRM to enjoy the service for their benefit.

The Deputy Minister of Energy, Collins Adomako-Mensah, said the new CRM would reduce the risks associated with the usage of LPG. He pointed out that LPG had been proven to be clean, safe, healthy and efficient fuel for cooking and other purposes, including industry, transportation, agriculture, power generation and refining.

Mr Adomako-Mensah indicated that although widespread access to LPG was limited in many developing countries, including Ghana, LPG had presently become the fuel of choice for domestic purposes in many households in the country.

He said the CRM would help to protect economic trees, such as shea, which were often cut down for charcoal production, thereby protecting the environment.

Critical role

The Eastern Regional Minister, Seth Kwame Acheampong, said LPG played a critical role in the daily lives of the people, from cooking to powering homes and businesses. He appealed to the public to take advantage of the CRM policy to prevent any risk associated with LPG usage.

Participants in Koforidua

Participants in Koforidua

The Industry Coordinator of the Association of Oil Marketing Companies, Dr Clement Amoako, gave an assurance that the association would collaborate with the NPA to ensure the successful implementation of the CRM.

The General Manager of Blue Ocean, Mlotshwa Zwelithini, and the Head of Brands and Communications of New Gas, Samuel Bonnuedie, said their bottling companies had started dispatching filled cylinders to selected exchange points in Accra.

They said the service would be extended to other regions with time. Daasebre Kwaku Boateng urged the public to embrace CRM since it was the surest way to save lives and prevent the harmful effects of climate change.

The CRM is a distribution system whereby a consumer brings an empty cylinder to an exchange point in return for an already filled cylinder.

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