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Cylinder Recirculation Model will cause LPG shortage—Group warns

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Shortage of LPG is set to hit the country in the coming weeks if government fails to avert a possible strike by the Association of LPG retailers.

The Association at a press conference this week, gave the government a one week ultimatum to rescind its decision to implement the Cylinder Recirculation model or face its wrath.

According to the group, all indigenous LPG retailers would collapse if government rolls out the new policy.

In an interview with Citi Business News, the Vice Chairman of the LPG Marketing Companies Association, Gabriel Kumi said a strike action by the LPG retailers will adversely affect their businesses and consumers.

“Basically whatever action the retailers take directly affects our operations. We can’t operate without the retails. So once the retailing fraternity has a concern and are bent on taking certain actions and have started given ultimatums and are threatening strike, if their concerns are not addressed then there’s no way we can get the product to the final consumer without the retailers.”

Mr. Kumi called on the relevant stakeholders to prioritize the concerns of the LPG retailers.

“Whatever concerns the retailers and other existing players have must seriously be taken into consideration. We must not rush. This policy is being pushed through as if there is no existing industry. The timing is too short for the policy to be implemented.”

Mr. Kumi went on to suggest that the stakeholders go back to President Nana Addo to ask for more time for the implementation of the policy.

Background

President Nana Akufo-Addo ordered the implementation of the Cylinder Re-circulation Model of LPG distribution following public outcry in the wake of the massive explosion at an LPG filling station at Atomic Junction.

That explosion claimed at least seven lives and injured over 100 persons.

By: Bobbie Osei/citibusinessnews.com/Ghana

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