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August 21, 2019
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Gov’t Cylinder Recirculation Module (CRM) to Create Unemployment

The government has been warned to rescind its decision of introducing the Cylinder Recirculation Module (CRM) to operators of Liquefied Petroleum Gas (LPG) in the country.

A Private Investor Protection Agency (PIPA), a Non – Governmental Organization (NGO) who seeks the welfare of private investors in the country, in a statement warned that the move will further increase unemployment in the country.

“The CRM will weaken the LPG business in Ghana”, PIPA observed in a statement signed by its Executive Secretary, Kwamena Backman.

The Cylinder Recirculation Module (CRM) is being introduced by the National Petroleum Authority (NPA), the statutory agency regulating and monitoring the petroleum downstream in Ghana.

The module which is intended to allow consumers to buy already filled cylinder with LPG at some designated gas stations allocated by NPA.

This system means that consumers will no longer own their own cylinders but instead, would purchase LPG in pre-filled cylinders.

The Ghana Cylinder Manufacturing Company is expected to producing only 37,000 cylinders needed for the pilot project in October 2019.

The pilot project is expected to start in Obuasi in the Ashanti Region and Kwaebibirim in the Denkyemboa District of the Eastern Region.

The Ghana Liquefied Petroleum Gas (LPG) Operators Association estimates more than 7,000 people will lose their jobs if the government goes ahead with its Cylinder Recirculation Module (CRM).

The Association said currently, there are about 601 LPG filling Stations across the country with direct employment of about 3,000 and indirect employment of about 4000 people.
Adding to the assertions by the Association, the PIPA is certain that when the module is implemented, a lot of gas stations who are into the retail of LPG would be forced out of business and this will, in turn, render many Ghanaian workers jobless.

PIPA said its findings indicate that the NPA has already toured some gas stations in the Obuasi Municipality in the Ashanti Region ear-marked to be used as pilot sites to execute their plans of recirculating the cylinders.

Already, some of the gas stations in Obuasi, out of the over 650 LPG station across the country, were out of operation for close to a year under the instructions of the NPA, the NGO source says.
The NPA per their routine checks to these gas stations hindered their operations by asking them to undertake some maintenance works to improve the safety precautionary measures and standards that are set for gas stations.

Unfortunately, a lot of these gas stations have not been permitted by the NPA to operate even after the completion of their maintenance works.

According to PIPA, information reveals that the NPA will go-ahead to introduce the module in September regardless of the several pleas from the operators to stop the module from taking effect.

PIPA is also gathering that just some selected gas stations will benefit partially from this module and it feels that it will not augur well for the many Ghanaians who have spent a lot of money into setting up these stations.

PIPA said, “to make matters worse for the gas station owners who are now operating under pressure, they have no idea about the modus operandi of the module”.

“.we also gather that, the NPA no longer issues a licence to Ghanaians who want to operate a gas station all in the name of the Cylinder Recirculation Module (CRM)”, PIPA statement added.

The statement indicated that “PIPA is however convinced that this whole deal of the CRM will cause more harm than good to the ordinary Ghanaian and drivers who use LPG in their daily operations”.

 

Source: therepublicnewsonline.com/Delali Awuyeh

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