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NPA devises ways to stabilise price of gas

May 17, 2024
Reading Time: 3 mins read

The National Petroleum Authority (NPA) has implemented strategies to eliminate huge jumps in the price of Liquefied Petroleum Gas (LPG) due to the implementation of the Cylinder Recirculation Model (CRM).

One of the strategies is the introduction of a tender program for the importation of LPG, which has significantly reduced the premium on the purchase of LPG. The program has brought down the price of LPG from $100 per metric tonne (MT) to $30 MT, giving the country a saving of $70 MT, which will be used for investment in cylinders and bottling plants under the CRM.

The Bono Regional Manager of the NPA, Mr. Kwadwo Odarno Appiah, provided this information at the Bono Regional version of the NPA town hall meetings on CRM in Sunyani, the Bono Regional capital, on Thursday.

He said the NPA would continue to engage the Ministry of Finance to consider the removal of certain taxes to reduce the price of LPG and make it affordable for all.

Mr. Appiah said Ghanaians would begin to exchange their old cylinders for new ones under the CRM in the coming weeks.

The meeting, which brought together hundreds of people, aimed to sensitize the public on the implementation of the CRM.

It also aimed to update and educate them about the policy, and its intended purposes, and solicit their support for the implementation of the policy.

Mr. Appiah said the NPA had several engagements with service providers, industry experts, and external stakeholders to ensure successful implementation.

He said they had also conducted several consumer sensitization campaigns and programs to educate the public on CRM and the safe use of LPG in general.

Mr. Appiah urged Ghanaians to support the implementation of the CRM to avoid smoke-related diseases.

He said a recent study showed that about 18,000 people in the country die yearly from the use of unclean fuels.

Mr. Appiah said the smoke from cooking with firewood and charcoal causes several diseases to its users, particularly women, who spend hours in the kitchen cooking.

“The smoke also makes them weak and, when used over a long period, affects their eyes,” he said.

Mr. Appiah said the smoke also affects the world in general because it pollutes the air people breathe and causes global warming, especially as most trees have been cut down.

“Let us embrace the model and ensure our safety, switching from charcoal and firewood to gas for a better, healthier life,” he said.

Mr. Appiah said the cooking style in Ghana and most parts of Africa puts the lives of women in danger because of the smoke they inhale from firewood and charcoal during cooking.

He said it was for that reason that the government has always promoted LPG as a cleaner, safer, and healthier alternative fuel for cooking, as it does not produce smoke.

Mr. Appiah said though acquiring firewood is free, people should be mindful that the diseases the smoke causes can cost them their lives, which makes it more expensive than LPG or any other fuel.

He said the NPA’s immediate target was to achieve 50 percent access by 2030 and explained that under the model, consumers would not own cylinders.

Mr. Appiah said anyone who wished to use LPG could walk to a cylinder exchange point, register, and gain access to a cylinder to use, stressing that “Consumers will only pay for the LPG.”

He said the government considered several issues that had created barriers to people using LPG and had come up with CRM.

Mr. Appiah urged the LPG marketing companies and dealers in the region to embrace CRM, as it would improve their operations, give them access to more consumers, increase jobs, and create value in the process.

He said the NPA had put measures in place to serve all communities with LPG without having to travel long distances.

Mr. Appiah said the NPA had several engagements with service providers, industry experts, and external stakeholders to ensure successful implementation.

He said they had also conducted several consumer sensitization campaigns and programs to educate the public on CRM and the safe use of LPG in general.

The Bono Regional Minister, Ms. Justina Owusu-Banahene, said it was imperative to take pragmatic steps to ensure that the adverse effects of charcoal and firewood are minimized, if not eradicated completely.

She said the use of firewood and charcoal has adverse effects on forest resources and the entire ecosystem.

Ms. Owusu-Banahene urged the public to support the government’s efforts to ensure that the majority of Ghanaians have access to safe, clean, and environmentally friendly LPG.

The Sunyanihenmaa, Nana Akosua Dua Asor Sika Brayie II, commended the NPA for the sensitization and urged the Authority to continue educating the public on the CRM.

 

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Source: National Petroleum Authority
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