The Ghanaian downstream oil industry is in uproar after allegations emerged that government officials have unlawfully redirected funds from the Liquef
The Ghanaian downstream oil industry is in uproar after allegations emerged that government officials have unlawfully redirected funds from the Liquefied Petroleum Gas (LPG) Fund to the Ghana Cylinder Manufacturing Company (GCMC).
In a joint press statement, the Chamber of Oil Marketing Companies (COMAC) and the Chamber of Bulk Oil Distributors (CBOD) described the alleged diversion as a “blatant breach of statutory mandate” and a “dangerous sabotage of national energy policy.”
The LPG Fund, established under Legislative Instruments LI 2262 (amended) and LI 2481, and implemented by the National Petroleum Authority (NPA) in April 2024, was explicitly designed to support three key objectives: financing the construction and operation of LPG bottling plants nationwide, funding the Cylinder Recirculation Model (CRM) for safe distribution, and ensuring the withdrawal of unsafe cylinders from circulation.
According to industry officials, the Fund was never intended as discretionary capital to be allocated at the government’s convenience.
Dr. Riverson Oppong, CEO and Industry Coordinator of COMAC, and Dr. Patrick Ofori, CEO of CBOD, warned that diverting the Fund’s resources to GCMC jeopardizes public safety and undermines the wider goals of Ghana’s LPG policy.
“By channeling funds away from bottling plant development, CRM implementation, and unsafe cylinder withdrawal, the government is actively prioritizing GCMC’s financial convenience over the safety and accessibility of LPG for millions of Ghanaians,” the statement said.
The economic implications of the alleged misallocation are significant. Industry players argue that private investors, who committed billions of cedis based on the statutory framework, now face potential collapse.
Thousands of jobs across the LPG value chain are at risk, and consumers may bear the cost through higher prices, reduced supply, and continued exposure to unsafe cylinders.
They warn that the credibility of the energy sector is on the line, with both domestic and international investors potentially reconsidering their commitments in the country.
COMAC and CBOD issued a set of non-negotiable demands: an immediate halt to any disbursements from the LPG Fund to GCMC, reversal of any allocations already made, and a public reaffirmation that the Fund will only finance its legally mandated objectives.
The associations also called for quarterly public reporting of Fund utilization, subject to independent audits, to ensure full transparency and accountability.
“This is not an industry request; these are legal and moral imperatives,” the statement emphasized. “The people of Ghana deserve nothing less than protection, transparency, and respect for the law. Government must now decide which side of that equation it occupies.”
The dispute comes at a time when Ghana is seeking to expand LPG access nationwide, reduce reliance on wood and charcoal for cooking, and improve public safety. Any disruption in funding or misallocation threatens to derail these national priorities and could provoke nationwide industrial action by the affected oil marketing companies.
COMMENTS