Business News of Saturday, 10 November 2018
The National Petroleum Authority will begin the implementation of the Cylinder Recirculation Model of LPG distribution in the first quarter of next year.
This is according to Mr. Samuel Asare-Bediako, coordinator for Unified Petroleum Price Fund. He said this at a sensitization programme held in Ho for the media.
Mr. Asare-Bediako announced that the NPA is almost ready for the implementation of the Cylinder Recirculation Model in a sensitization engagement with the media in Ho. President Nana Addo Dankwa Akufo-Addo, shortly after the Atomic Gas explosion, directed the implementation of the Cylinder Recirculation Model.
The model involves the filling of LPG cylinders at designated refilling plants for onward distribution to consumers through retail outlets to be known as exchange points.
The purpose of this new model according to Mr. Samuel Asare-Bediako is to: “Develop a market-driven structure to ensure safety, increased access and adoption of LPG and ensure the existence of robust and standard health, Safety and environmental practices in the production, marketing, and consumption of LPG.”
Ghanaians will be required to send their empty cylinders to LPG Distribution centers or sub-distributor outlets to exchange with filled cylinders or engage the services of door-to-door delivery service providers.
Empty cylinders at retail outlets will then be transported to bottling plants for refilling for onward distribution. New consumers who do not have cylinders will have to make cash deposits to be given new ones.
The Liquefied Petroleum Gas Marketing Companies will be responsible for procuring, branding, and maintaining the cylinders Mr. Asare-Bediako told the media. Specialized trucks will have to be used to transport the filled cylinders from the bottling plants to the retail stations or exchange points, where consumers will exchange their empty cylinders for filled ones.
With a successful rollout of the cylinder recirculation model, Ghana will join other West African countries like Togo, Benin, Sierra Leone, Burkina Faso, Senegal, and many others in what experts say is a “safer and an environmentally friendly” distribution of LPG.