Oil marketing and bulk distribution chambers condemn alleged misuse of LPG fund

The Chamber of Oil Marketing Companies (COMAC) and the Chamber of Bulk Oil Distributors (CBOD) have condemned the alleged diversion of funds from the Liquefied Petroleum Gas (LPG) Fund to the Ghana Cylinder Manufacturing Company (GCMC), describing the move as a “flagrant breach of statutory mandate” and a “dangerous sabotage of national energy policy.”

The LPG Fund, implemented by the National Petroleum Authority (NPA) on April 1, 2024, under Legislative Instruments LI 2262 (amended) and LI 2481, was established with three legally binding objectives:

1. USD 44/MT Bottling Plant Margin – To finance the construction and operation of LPG bottling plants nationwide.
2. USD 36/MT Cylinder Investment Margin – To fund the Cylinder Recirculation Model (CRM) for safe and efficient LPG distribution.

The press release emphasised that the fund’s purposes are non-negotiable and were never intended as discretionary capital for ad hoc allocations.

Redirecting resources to GCMC, according to COMAC and CBOD, represents not administrative flexibility but a direct breach of law that undermines the LPG safety and infrastructure framework.

The chambers argued that diverting the fund away from bottling plant development, CRM rollout, and the withdrawal of unsafe cylinders endangers lives.

“Government is actively choosing GCMC’s financial convenience over the holistic mission to increase LPG accessibility, remove lethal cylinders from circulation, and ensure safe replacement,” the statement read.

Beyond the immediate energy sector, the alleged diversion carries wider economic consequences:

• Destruction of private investment – Operators who invested billions based on statutory assurances face potential collapse.
• Job losses – Thousands of livelihoods along the LPG value chain are threatened.
• Consumer exploitation – Households may bear the burden through higher prices, reduced supply, and continued safety risks.
• Investor flight – Both domestic and foreign investors may withdraw from a jurisdiction where statutory guarantees are not respected.

The chambers warned that “every diverted cedi erodes competitiveness, freezes critical investment, and transfers wealth from productive enterprise to governmental discretion,” undermining public confidence in state institutions.

COMAC and CBOD outlined clear, non-negotiable corrective measures:

1. Cease all disbursements to GCMC from the LPG Fund immediately.
2. Reverse any allocations already made and restore funds to their lawful purpose.
3. Reaffirm statutory mandate – Ensure the fund finances only bottling plants, CRM rollout, and unsafe cylinder withdrawal.
4. Guarantee transparency – Implement quarterly public reporting on all fund utilisation with independent audit verification.

“These are not industry requests. These are legal and moral imperatives,” the statement stressed.

The chambers a pointed message to authorities: the government must now decide whether to uphold the rule of law, protect its citizens, and maintain energy sector credibility, or to condone misallocation and bureaucratic convenience at the expense of safety and public trust.

COMAC and CBOD pledged to pursue all legitimate avenues—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. We will not accept anything less than full accountability, decisive leadership, and restoration of fund integrity,” the statement concluded.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.