The National Petroleum Authority (NPA), has hinted at a likely increase in the prices of LPG products as government prepares to implement the Cylinder Re-circulation policy.
The Chief Executive Officer of the NPA, Hassan Tampuli, who revealed this in a meeting with the Mines and Energy Committee of Parliament, said the new policy will bring about some additional cost in the production and supply of the product.
Explaining how the cylinder re-circulation project will work and its likely effect on prices of LPG products, Mr. Tampuli said: “Currently the policy directive is that, we should have at most six stations. If we have any explosion it should be at those places and not anywhere, so the fear and apprehension that people will be suffering will be abated to a very large extent. That is what the cylinder recirculation module is going to achieve."
He stated, "It is going to lead to a little increase in the price, but it is just marginal which is going to take care of the margins for the LPG bottling plant because that is the new addition to the supply chain, and we do this for our safety and we believe that all in all, the policy of LPG cylinder re-circulation should succeed.â€
Since government’s announcement of the introduction of the policy, there have been several instances of opposition from the LPG Marketers Association and the Association of Gas Tanker Drivers, who insist the move, will negatively affect their businesses.
Some Ghanaians have also raised concerns about the affordability of the cost of the end product.
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