The National Petroleum Authority (NPA) has officially informed LPG marketing companies in the country that beginning September 2023, it will start implementing the first phase of the governments nationwide Cylinder Recirculation Model (CRM) from Greater-Accra and Ashanti regions.
In a letter dated July 7, 2023, signed by Deputy CEO of of NPA, Curtis Perry Okudzeto, and addressed to All LPG Marketing Companies, the NPA said the program will then be extended to other parts of the country in phases.
It would be recalled that way back in October 2017, government, through the energy ministry introduced a new policy directive for marketing and distribution of LPG (liquified petroleum gas) in Ghana, using the CRM, to ensure at least 50% of Ghanaians have access to safe, clean, and environmentally friendly LPG for increased domestic, commercial and industrial usage by 2030.
The Ministry then mandated the NPA to constitute an implementation committee to plan, oversee and ensure the smooth and successful implementation of the CRM.
The NPA said it has, together with the committee, formulated some strategies for the implementation of the CRM and undertaken some key activities, adding that a regulatory framework including licensing structure, pricing structure, HSSE (health, safety and security environment) guidelines and operational standards have been developed, based on which a pilot was carried out on parts of the value chain in March 2020 in four (4) regions of the country.
“The Authority wishes to commence the main CRM implementation with the full value chain of the model which will involve the filling of domestic cylinders with LPG at the Bottling Plants and the distribution of same to LPG consumers at Cylinder Exchange Points (CEPs),” it said.
Per the new policy, LPG cylinders will not more be filled at the filling station as the public have known but they will be pre-filled at designated bottling plants and taken to the various distribution outlets, where individuals Ghanaians will go and exchange their empty cylinders for filled one.
The letter said NPA plans to begin this main CRM implementation in the Greater-Accra and the Ashanti Regions as Phase 1 in September 2023 and then extend implementation to the other regions across the country in Phases.
“Following our deepened engagements and in preparation towards the commencement of the CRM, the Authority wishes to reassess all the LPG Refilling Outlets in the country starting in the Greater Accra and the Ashanti Regions with the view of re-classifying the outlets into high, medium and low risk categories.” it said.
According to the letter, the outlets that are classified as medium or low risk will be considered for operation as Autogas Stations (serve only vehicles that use LPG as fuel) whereas outlets classified as high risk shall be considered to operate as Cylinder Exchange Points.
It said the outcome of the assessment exercise will be communicated to relevant stakeholders to inform the next line of action, adding that in the meantime, “we request that you alert your station managers to be ready to provide the necessary information to officers of the NPA who visit your premises to ensure the exercise is carried out smoothly and successfully.”
Find a copy of the letter below:
