Dr. Patrick Ofori
The Chamber of Bulk Oil Distributors (CBOD) has expressed concern about the recent decision by Liquefied Petroleum Gas Marketing Companies (LPGMCs) to cease business relations with SAGE Petroleum (Quantum Terminals) and Blue Ocean depots in Tema.
According to the CBOD Chief Executive Officer, Dr. Patrick Ofori, these two companies are valued members of the CBOD and are key players in the downstream petroleum sector that have been legally registered by the laws of Ghana and comply with the National Petroleum Authority (NPA) Act 691, Act 2005 requirement for licensing regulation for the sector.
“The decision by LPGMCs to cut ties with these companies is counterproductive to the LPG promotion efforts by government, NPA and all stakeholders,” he said.
Dr. Ofori said the two companies made substantial investments in the LPG industry, particularly in the Cylinder Recirculation Model (CRM) which aligns with the government’s target of increasing LPG usage to 50% by 2030.
“Their commitment to this initiative is evident in their over $30 million investment in bottling plants, storage facilities, and cylinders, as well as a $70 million investment with the next 18months,” he said.
Dr. Ofori said while CBOD advocates for the protection of Ghanaian businesses, and are opposed to illegal activities, it is equally important to avoid deliberate misinformation and misrepresentation that could create undue controversy over the facts associated with the issue under discussion.
“Every entity in the value chain must be held accountable. If any of our members are found to be in violation of these regulations, the regulator must take decisive action.
What we cannot allow is for the hard work and reputation of our industry to be undermined by baseless allegations that seek to use xenophobic ideas to tarnish these respectable companies’ reputation,” he added.
He said efficiency should drive the market, leading to cheaper and safer LPG delivery for consumers.
“While we strive to preserve our environment, we must never compromise our safety and efficiency of domestic Gas usage by spreading misinformation.
A competitive business environment is essential for innovation and growth. We urge all stakeholders to engage in constructive dialogue to resolve this issue and foster collaboration within the industry,” he said.
“CBOD stands in solidarity with Quantum Terminals and Blue Ocean and calls for a swift resolution that benefits all parties involved.
We encourage our brothers from the LPG Marketing Companies (LPGMCs) to collaborate with the regulator and all relevant stakeholders, as none of us in the space pose a threat to each other, but the market will go against those who fail to comply, innovate and evolve,” he added.
A Daily Guide Report