The LPG Marketers Association (LPGMA) has refuted claims that they oppose the Cylinder Recirculation Model (CRM).
In a statement issued on Sunday, July 21, and signed by Vice President Gabriel Kumi, the association clarified that these claims are false.
According to the statement, LPGMA has engaged in numerous discussions with the National Petroleum Authority (NPA) and agreed that both the refilling and CRM systems should operate side by side.
“Our advertisements are solely aimed at promoting LPG usage to protect our environment and promote indigenous businesses, but not to oppose CRM.
“There are clear differences between opposition and competition in our humble opinion. Our requests to mount cages in all our LPG stations across the country to support the policy by distributing CRM cylinders were vehemently turned down by the NPA," portions of the statement read.
Read also: CRM gains momentum with first dispatch of LPG cylinders
The association criticized statements from the NPA suggesting that LPGMA is resistant to change, calling them "derogatory and disingenuous."
They acknowledged that transitioning from refilling to CRM would be costly and emphasized the need for transparency regarding the potential job creation of CRM.
They noted that the current refilling system provides over 10,000 jobs, including 8,000 direct and 2,000 indirect positions, and questioned the job creation claims made by the NPA regarding CRM.
"We are yet to be told the exact number of jobs that CRM could potentially create, and it will do all of us a lot of good if NPA could tell Ghanaians how many jobs CRM has created over the past year of its launch. Simply claiming that CRM will generate ’Aboboyaa’ jobs is insufficient, lacks transparency and authenticity, and can only have propaganda and a populist value.”
LPGMA called on the NPA to uphold its regulatory role with impartiality and ensure a fair and balanced approach for all stakeholders in the industry.
"There is no example of any country in the world with a well-established, regulated, robust, and entrenched LPG distribution network that has abandoned it in favour of CRM without due process and adequate compensation to indigenous investors. Colombia, which transitioned to CRM, provided full compensation to its citizens. Nigeria, on the other hand, is moving away from CRM to refilling plants even though they started with a dual system,” the Association added.
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