Business News of Tuesday, 22 May 2018
Deputy Energy Minister, Dr. Mohammed Amin Adam has chided the operators of LPG for embarking on a strike, saying such actions disrupt government’s bid to increase the penetration of LPG to 50%.
The operators began a nationwide strike yesterday to press on government to stop the implementation of the Cylinder Recirculation module.
They complain that the project if implemented will push them out of business causing some 7,000 people to lose their jobs.
But speaking at the launch of the 2018 Safety Week celebration organized by the Association of Oil Marketing Companies, Deputy Energy Minister Dr. Mohammed Amin Adam said the LPG industry is becoming unstable.
He believes the decision by the operators in the LPG industry will disrupt government’s efforts to increase LPG penetration in the country which currently stands around at 23%.
“I am getting worried because if you have a market that is unstable as a result of this threats, then all the efforts we have made, the achievements we have made to get to the 23% penetration will be eroded because we are going to have people going back to charcoal,” he bemoaned.
Last year, LPG distributor’s also threatened to suspend their services to protest the implementation of the cylinder re-circulation module.
However, the National Petroleum Authority has indicated it will go ahead with the implementation of the project as it is the safest way of retailing LPG.
Meanwhile, government is set to meet the striking LPG operators over their strike action.
Under the new module according to the NPA, LPG Bottling Plants will be sited away from congested commercial and population centers.
Managers of the plants will then procure, brand, maintain and fill empty cylinders to be distributed to consumers and households through retail outlets.
Low risk stations will be selected for the supply of gas to vehicles.