The Chamber of Oil Marketing Companies (COMAC) and the Chamber of Bulk Oil Distribution Companies (CBOD), have threatened to embark on a strike over the alleged unlawful diversion of funds from the LPG Fund to the Ghana Cylinder Manufacturing Company (GCMC).
In a joint statement, the two associations vowed to explore all legal means to reverse the action.
According to them, the move constitutes a flagrant breach of statutory mandate, a dangerous sabotage of national energy policy, and an unacceptable betrayal of public trust. They described the alleged diversion as a blatant deviation from the fund’s original purpose.
The associations are demanding the immediate reversal of the action through the following measures:
- Cease all disbursements to GCMC from the LPG Fund immediately.
- Reverse any allocations already made to GCMC and restore the funds to their lawful purpose.
- Reaffirm statutory mandate – Government must publicly confirm that the LPG Fund will finance only bottling plants, CRM rollout, and unsafe cylinder withdrawal.
- Guarantee transparency – Implement quarterly public reporting on all fund utilisation with independent audit verification.
They added that “These are not industry requests. These are legal and moral imperatives.”
Background
According to COMAC and CBOD, the eLPG Fund was established under Legislative Instruments LI 2262, as amended, and LI 2481, and implemented by the National Petroleum Authority, NPA, on April 1, 2024, with three explicit, legally binding objectives:
- USD 44/MT Bottling Plant Margin – To finance construction and operation of LPG bottling plants nationwide.
- USD 36/MT Cylinder Investment Margin – To fund the Cylinder Recirculation Model, CRM, rollout for safe and efficient LPG distribution.
They argued that these purposes are non-negotiable.
They further noted that “the fund was never intended as discretionary capital for ad hoc allocations”.
The associations also maintained that “redirecting it to GCMC is not administrative flexibility it is a statutory violation that demolishes the foundation of Ghana’s LPG safety and infrastructure framework.”
Government’s Intervention
The two associations are calling on government to urgently address the matter, stating that “This moment demands decision: Will Ghana uphold the rule of law and protect its citizens, or will it condone misallocation, erode energy sector credibility, and sacrifice lives for bureaucratic convenience?”
They also stated that COMAC and CBOD will pursue every legitimate avenue, policy, legal, and public, to defend the LPG Fund’s rightful utilisation.
“We will not permit this fund to become a discretionary slush account. We will not remain passive while statutory protections are shredded,” they added.
They further cautioned that “we will not accept anything less than full accountability, decisive leadership, and restoration of fund integrity.”
“The people of Ghana deserve nothing less than protection, transparency, and respect for the law; the government must now decide which side of that equation it occupies,” they argued in the joint statement.
The associations also maintained that “we will explore all options to protect our interest and preserve our right as key stakeholders under the structure.”
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Source: www.myjoyonline.com
