The Chamber of Oil Marketing Companies (COMAC) and the Chamber of Bulk Oil Distributors (CBOD) have strongly condemned what they describe as an illegal LPG Fund diversion to the Ghana Cylinder Manufacturing Company (GCMC), warning that strike action is imminent if the decision is not reversed.
In a joint press release, the two industry bodies accused authorities of breaching statutory provisions governing the LPG Fund and undermining the integrity of Ghana’s downstream petroleum sector.
“This action constitutes a flagrant breach of statutory mandate, a dangerous sabotage of national energy policy, and an unacceptable betrayal of public trust.”
Chamber of Oil Marketing Companies (COMAC) and the Chamber of Bulk Oil Distributors (CBOD)
Legal Mandate of the LPG Fund
The LPG Fund was established under Legislative Instruments LI 2262 (amended) and LI 2481 and implemented by the National Petroleum Authority (NPA) on April 1, 2024.
According to COMAC and CBOD, the Fund was created with specific and binding objectives aimed at strengthening Ghana’s liquefied petroleum gas infrastructure and safety systems.
These objectives include financing LPG bottling plant margins and supporting the Cylinder Recirculation Model (CRM), a national policy initiative designed to improve safety and efficiency in LPG distribution.
The CRM seeks to centralize cylinder filling at bottling plants and gradually phase out unsafe cylinders from circulation.
The two chambers insist the Fund “was never intended as discretionary capital for ad hoc allocations.” Redirecting resources to GCMC, they argue, undermines the very framework established to enhance safety and accessibility in LPG distribution nationwide.
Safety and Infrastructure Concerns
Beyond legal arguments, COMAC and CBOD emphasized the potential safety implications of the alleged diversion.
They contend that channeling funds away from bottling plant development and CRM implementation compromises efforts to remove defective cylinders from the market.
“Government is actively choosing GCMC’s financial convenience over a holistic mission to increase accessibility of LPG, remove lethal cylinders from circulation, and ensure safe replacement.”
Chamber of Oil Marketing Companies (COMAC) and the Chamber of Bulk Oil Distributors (CBOD)
Industry observers note that the successful rollout of the Cylinder Recirculation Model depends heavily on consistent funding.
Any disruption, stakeholders warn, could slow infrastructure expansion and expose consumers to continued risks associated with aging or unsafe cylinders.
Economic and Investment Impact
The chambers further argued that the alleged misallocation could have severe economic consequences. According to the statement, billions of cedis have already been invested by private operators in reliance on statutory guarantees underpinning the LPG Fund.
They warned that altering the Fund’s purpose midstream could destabilize businesses across the downstream value chain, threaten jobs, and erode investor trust.
“Every diverted cedi erodes competitiveness, freezes critical investment, and transfers wealth from productive enterprise to governmental discretion.”
Chamber of Oil Marketing Companies (COMAC) and the Chamber of Bulk Oil Distributors (CBOD)
COMAC and CBOD also suggested that ordinary Ghanaian households may ultimately bear the cost through higher prices, reduced supply reliability, and sustained safety risks.
The industry bodies have outlined a series of demands, calling for an immediate halt to any disbursements from the LPG Fund to GCMC. They are also seeking the reversal of any allocations already made and a public reaffirmation of the Fund’s statutory mandate.
Additionally, they are pushing for enhanced transparency measures, including quarterly public reporting on Fund utilization and independent audit verification to ensure compliance with legal requirements.
“These are not industry requests. These are legal and moral imperatives,” the statement emphasized.
Threat of Strike Action
With tensions escalating, COMAC and CBOD signaled their readiness to pursue all legitimate avenues to defend what they describe as the rightful use of the LPG Fund.
“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.”
Chamber of Oil Marketing Companies (COMAC) and the Chamber of Bulk Oil Distributors (CBOD)
The warning of possible strike action introduces the prospect of disruptions within Ghana’s petroleum distribution chain if the dispute is not resolved swiftly. Such action could affect fuel supply logistics and LPG availability nationwide.
As of press time, there has been no official response from the National Petroleum Authority or the Ghana Cylinder Manufacturing Company regarding the allegations.
The unfolding dispute places the government at a critical juncture. COMAC and CBOD argue that the issue transcends industry concerns, framing it as a broader test of governance, statutory compliance, and public accountability within Ghana’s energy sector.
“The people of Ghana deserve nothing less than protection, transparency, and respect for the law,” the statement concluded, urging authorities to act decisively to restore confidence in the LPG Fund’s administration.
With industry leaders standing firm and threatening industrial action, the coming days are likely to determine whether dialogue or disruption defines the next chapter of Ghana’s downstream petroleum sector.
