Ghana considering new policy to regulate gas cylinders

The National Petroleum Authority (NPA) of Ghana is considering a policy to remove old and defective gas cylinders from the system to avoid gas explosions and maintain safety at homes and public areas.

The Director for Pricing, Planning and Research at the NPA, Dr Dan Amoah, said this at a BUSAC-sponsored stakeholders workshop in Tema for members of the Ghana Liquefied Petroleum Gas Operators Association (GLiPGOA) drawn from across the country.

He said since the early 1990s when the use of gas was promoted extensively to reduce devastation of the forest for charcoal, there had not been any major effort to get rid of faulty cylinders.

He, therefore, called on the association to be innovative and co-operate with the authority during the removal of defective cylinders.

He also said some non-existent oil companies still had their names inscribed on cylinders, an indication that the cylinders had been used for many years without being changed.

He, therefore, urged them to take up the challenge and assist the authority to facilitate the inspection and removal of unsafe and bad cylinder bottles.

Dr Amoah called on the Liquified Petroleum Gas (LPG) operators to incorporate safety in their operations because their area of operation is highly volatile and calls for utmost safe practices.

He extended his call to taxi operators who fix domestic gas cylinders in their car boots, ignoring safety measures to eschew the practice.

Dr Amoah stated that the NPA has not been able to give differential rates in pricing of gas for domestic users and commercial operators.

He explained that when the use of gas was being promoted, certain challenges including the price for gas used by vehicles were not considered.

Dr Amoah stated that the use of gas had increased to about 600% and suggested that members of the association should adopt measures that would help them to recover their investment.

He indicated that the NPA Act protected the interest of the operator, consumer and government and added that the country had a history of gas being subsidised by between 40% and 45%.

Dr Amoah affirmed that inadequate supply of the product had affected their earnings but blamed that on the inadequate storage facility and added that the Tema Oil Refinery (TOR) which was currently not producing any gas had an inadequate storage facility that could store only one week’s supply of the product.

Dr Amoah also said Fuel Trade, an importer of gas, was yet to complete its infrastructure to store another one week’s supply that would prolong the supply period in the country.

The Director of Petroleum Division at the Ghana Standard Authority, Mr Ade Acquah, commented on the adjustment of scales by members and advised that they calibrated their pumps to ensure correct readings.

The consultant to the association, Dr Liberty King, was of the view that the margins left for the operator to expend on taxes and other expenses were being eroded and suggested a reconsideration of the issue since some of    the operators were folding up the businesses.

Some association members­ called on the government to harmonise the functions of bodies including the Ghana National Fire Service GNFS and Environmental Protection Agency which undertake almost the same inspection work at the stations.

The President of the association, Togbui Adaku, expressed gratitude to BUSAC for funding the workshop and expressed the hope that the government would take steps to ensure an adequate supply of the product on the market to enable operators meet the demand and be able to pay their taxes.

Officials of the GNFS, Ghana Revenue Authority and BUSAC made presentations at the workshop.

Source: Daily Graphic

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