The NPA in a statement explained that, this is “in line with a drop in crude and petroleum prices on the world market, as well as stability in the exchange rate.”

[contextly_sidebar id=”gqAS60LpAFQ0yocbJ8A99ErlSbEKTEgq”]The Authority added that, it had “activated the Price Stabilization and Recovery Levy to stem potential upward adjustment in the price of diesel.”

“The NPA wishes to assure the public of its commitment to monitor the situation in order to ensure the full benefit of the reduction is felt,” the statement further indicated.

Fuel prices hit all-year

In September 2017, it emerged that Ghanaians were paying more for petrol and diesel few months after enjoying fairly low prices.

Figures from the petroleum industry had shown that, prices of the two products at the various fuel stations had hit all time high, with petrol selling at an average of GHc4.29 at the pumps, and diesel going for an average of GHc4.23 per litre, as at the third week of September 2017.

The increase had been attributed to the marginal depreciation of the cedi, as well as increased global crude oil prices due to the floods in the US which affected production at major oil companies.

IES predicts no fuel price increase

The Institute of Energy Securities (IES ) had also predicted  that consumers will not experience any significant price change at the pumps in the first pricing window of December 2017.

The Principal Research Analyst at the IES, Richmond Rockson, who made this prediction in an interview with Citi Business News explained that, despite the fast depreciation of the cedi against the dollar, the effect on petrol prices will be minimal.

“In the next pricing window which is the first pricing window in December, we foresee fuel prices remaining fairly stable, when I say fairly stable what I mean is that, we are not expecting any price change, and even if there will be a change in prices it won’t be significant”.

“The cedi is depreciating at a fast rate even though it is selling around 4 cedis 6 pesewas on the foreign exchange market. The average for the period is 4 cedis 48 pesewas, as compared to the previous average of 4 cedis 41 pesewas”

He explained that, the depreciation of the cedi would reflect in a price change of less than one percent for petrol, and therefore will be insignificant.

“Virtually a depreciation of 1.5 percent. Crude oil prices have remained fairly stable as well, and the difference is less than one percent,” he said.

NPA revises fuel prices downward through Price Stabilization levy

On December 1, the National Petroleum Authority (NPA) also directed all Oil Marketing Companies, and LPG Marketing Companies to use revised prices in the Price Stabilization and Recovery Levy Act to control recent price increases in petroleum products.

This followed a directive from the Ministry of Energy, raising concerns about the recent fluctuations in the prices of petroleum products due to strong political and economic influence from oil producing countries across the world.

In line with the directive, the Authority was expected to revise the cost of the levy which is one major component in the determination of petroleum prices.

By this, the Price Stabilization and Recovery Levy for petrol will remain at 12 pesewas per liter, while diesel and LPG are revised to 3 pesewas per liter from 10 pesewas per liter.

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By: Marian Ansah/citifmonline.com/Ghana

The post Petrol, LPG prices to remain stable at pumps – NPA appeared first on Citi 97.3 FM - Relevant Radio. Always.

The LPG Marketing Companies Association of Ghana has accused government of a grand scheme to wipe them out of business.

[contextly_sidebar id=”dlmndSF8bHCGXyszUotjpio66Ph7EIfW”]According to the association, its members have been omitted from the proposed value chain for the cylinder recirculation policy.

A Deputy Energy Minister, Mohammed Amin, meanwhile, chided the Association of LPG Marketers last week, for what he described as an attempt to hold Ghanaians to ransom over the policy.

But speaking to Citi Business News, the Chief Executive Officer of the Chamber of Bulk Oil Distributors, Senyo Hosi called on all stakeholders to remain calm since every player will get the opportunity to influence the direction of the Cylinder Recirculation policy.

“I encourage all the parties to hold fire. We need to sit down as industry players and solve this issue. The committee is just about starting its work, and all stakeholders would get a privileged opportunity to influence the direction of the policy. In all of this the national interest must be supreme. We all need to participate in the entire process to reach a fair resolution for all parties”.

The President Nana Akufo-Addo ordered the implementation of the Cylinder Re-circulation Model of LPG distribution following public outcry in the wake of the massive explosion at an LPG filling station at Atomic Junction.

That explosion claimed at least seven lives and injured over 100 persons.

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By: Bobbie Osei/citifmonline.com/Ghana

The post CBOD calls for calm in cylinder recirculation disagreement appeared first on Citi 97.3 FM - Relevant Radio. Always.

Consequently, the National Petroleum Authority (NPA) closed down 71 filling stations due to non-compliance with some regulatory and technical requirements.

[contextly_sidebar id=”4Zzm0udmjLzlBS3NKgGrbEluCs1Wkf7P”]However, 26 of the filling stations closed down have been re-opened after comprehensive inspections were carried out by the Inspections and Monitoring Unit of NPA.

This means 45 LPG filling stations remain closed.

An additional 37 filling stations have been earmarked for closure when the level of their stocks reduces to levels within the safety zone.

Chief Executive Officer (CEO) of NPA, Hassan Tampuli announced this at the launch of the National Petroleum Safety Campaign, under the theme ‘People Safety First’.

The campaign is intended to raise awareness for the adherence to safety protocols in the petroleum downstream industry, and to educate the public on their role in preventing fires at all petroleum installations and other locations in the country.

114 Out of 276 LPG stations in full compliance

A total of 114 out of the 276 LPG stations inspected by NPA were found to be in full compliance with the prescribed safety standards.

This means 162 LPG stations were found not to be in full compliance with the prescribed safety standards.

Action has been taken against 108 LPG stations, and the NPA is still working to arrive at a decision on the remaining 54 stations found not to be in full compliance with all regulatory and technical requirements.

582 LPG stations in operation

Out of the 636 registered number of refilling plants, 54 are not in operation, leaving 582 in operation.

Tampuli announced that NPA has constituted a committee to oversee the activities of a taskforce that would undertake a comprehensive risk assessment of the existing LPG infrastructure in the country.

According to him, the criteria for categorising the stations into low- or high-risk will include siting or location of the station.

He noted that the compatibility of the station with surrounding activities would be physically assessed to inform the ranking of the facility, and the station must also meet the required minimum safety distances.

He added that the facility layout and the engineering shall conform to strict standards, saying the material of construction shall be appropriate and non-combustible, with the requisite anti-fire or resistant properties.

Also, he said, facilities without the incorporation of active safety systems shall be closed down to avoid any poor containment incident.

Operations and management

The NPA CEO said the assessment would also cover the operations and general management of the facility, and all staff within the facility should demonstrate adequate knowledge of handling LPG and the standard operating procedures.

“High-risk stations will be closed down while low-risk stations will be designated for the supply of gas for vehicles with improved standards.

“As you are aware, Cabinet has approved the introduction of the Cylinder Recirculation Model of LPG distribution where individuals will no longer own LPG cylinders.

“The NPA is currently developing the implementation strategy of the model, which will be rolled out within one year.
“In the coming weeks, the authority will publish the licensing requirements for setting up LPG bottling plants,” he added.

Tampuli urged the general public to adhere to the safety precautions being propagated, saying safety is a shared responsibility.

He stated that the NPA has intensified its monitoring and inspection activities, in collaboration with other agencies, including the Ghana National Fire Service, Environmental Protection Agency, and Factories Inspectorate Department.

The Reconstructive Plastic Surgery and Burns Centre of the Korle-Bu Teaching Hospital shows a worrying trend where between 35% and 40% of all burns cases admitted at the centre are caused by petroleum products since 2011, and the number has been on the rise, year on year.

It is further reported that about 45% of deaths recorded at the centre were caused by virtue of various degrees of burns resulting from petroleum and gas-related explosions suffered by the victims, resulting in their untimely death.

Tampuli said the authority views this trend as horrifying, and is intensely working to raise awareness on television, radio and various media outlets on safe ways of handling petroleum products to curb injuries and deaths from LPG, petrol, premix and other petroleum-related fires.

It is pertinent to know that some of the recent accidents in the country were caused by human factors such as failure to observe basic safe operating procedures, lack of awareness, and a complete lack of demonstrable knowledge in products handling.

Deputy Minister of Energy, Dr Mohammed Amin Adam, who read the speech of Energy Minister Boakye Agyarko, revealed that in spite of the dangers of poor safety and regulatory regimes, regulators continue to allow special interests to undermine their enforcement of safety regulations, putting the lives and property of people on the line, and, consequently, projecting the petroleum industry as insensitive, irresponsible and only motivated by profits.

Calling for an end to the laxity, he encouraged industry players to take the bold step of formulating industry safety standards through industry associations and peer review each other, and where necessary delist peers who are not keeping up with standards.

According to him, this would not only complement the role of regulators, but would embolden them to take decisive disciplinary actions against offending industry players based on industry recommendations.

He said it is essential that the NPA deemed it imperative to intensify its public education campaign on the safe use and handling of this product.

He urged the NPA and other regulators of the downstream petroleum industry to intensify their inspection regime to ensure safety compliance in the industry.

“It is in this light that my ministry has given the green light for the NPA to partner with relevant stakeholders to deploy 200 safety auditors to augment the already existing safety measures to ensure safety standards at various petrol/diesel and gas stations across the country,” he added.

–

Source: Finder

The post Over 100 LPG stations fail NPA test, 71 closed down appeared first on Citi 97.3 FM - Relevant Radio. Always.

Mr. Brobby on the Citi Breakfast Show indicated that, the move is a knee-jerk reaction aimed at pushing government to meet the demands of the Association, adding that, the decision might rather worsen the challenges LPG marketers face.

[contextly_sidebar id=”MWRrH2FdrlLSgWezQuhwv2LjHVd68YuV”]“I think that the reaction is totally knee-jerk and unnecessary, and will lead to the acceleration of the problems that they are fighting because at the end of the day, it is about the consumer, and making sure the consumer is well served… This idea of self-segregation doesn’t work. It is a totally needless and fruitless decision.”

He pointed out that the National Petroleum Authority (NPA), is also to blame for the Association’s decision since it failed to dialogue before closing down some stations, thus forcing the latter to suspend its operations.

“The taskforce and the NPA should have published the rules of engagement and should have told the Association which stations they have closed down and why they closed them down. There’s been a problem because the regulators have not done their job well.”

Meanwhile, the Vice Chairman of the LPG Marketers Association, Gabriel Kumi, has said their decision to suspend operations nationwide, is to protest what they consider as unfair treatment by authorities.

Speaking on the Citi Breakfast Show, Mr. Kumi alleged that, some state officials, including assembly members, have been extorting money from LPG Marketers across the country, since the deadly Atomic Gas explosion, and the subsequent directives from government to sanitize the industry.

Mr. Kumi indicated that, some stations are even facing a threat of closure by the assembly members who are supposedly extorting money from them.

“We have assembly men going round our stations that they want to close it down. There is a whole extortion business going on by this team.”

The Association’s members, some of who shutdown from Wednesday, October 19, have not indicated when it will allow members resume regular operations.

The Association had indicated that, the closure was to allow for a safety audit.

Mr. Kumi has however clarified that, the move is primarily a response to government’s decision to close down some high risk fuel stations.

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By: Marian Ansah/citifmonline.com/Ghana
Follow @EfeAnsah

The post LPG Marketers blackmailing gov’t – Wereko Brobby appeared first on Citi 97.3 FM - Relevant Radio. Always.

This is to protest government’s decision to implement the cylinder re-circulation module, which was proposed by the National Petroleum Authority (NPA) to ensure that LPG filling points are sited out of densely populated areas and commercial centres.

These plants will procure, brand, maintain and fill empty cylinders to be distributed to consumers and households through retail outlets and stations, deemed to be low risk, after government’s assessment.

[contextly_sidebar id=”FtnLFFCcU91RHKgNkKXJTy1NNW4rORZ4″]Citi News sources say the policy was developed in 2012, but it could not be immediately implemented.

However, following a massive gas explosion at Atomic Junction about two weeks ago, President Nana Addo issued a directive for the policy to be implemented.

In reaction to this, Citi News has gathered that the Ghana LPG Marketing Companies and its affiliates, are planning to lay down their tools on Wednesday, October 18 to register their disquiet.

The explosion has so far claimed at least seven lives, and injured over 100 persons. The loss of lives even touched closer to the Presidency, as a presidential correspondent for Net 2 TV lost his life in the commotion sparked by the explosion.

The outrage over the explosion was the culmination of widespread concern over the lax safety standards of some LPG and petrol filling stations, which have seen about eight major explosions since 2014, not counting the June 3 fire and flood disaster at a petrol station near the Kwame Nkrumah Circle.

Cylinder Recirculation Module will collapse our businesses – LPG marketers

The threat of a strike comes days after the Public Relations Officer of the LPG Marketers Association, Bernard Owiredu, expressed his outfit’s disquiet over plans to introduce the module.

Mr. Owiredu had indicated that, the current module is targeted at collapsing their businesses, despite their many years of existence in the industry.

Cylinder circulation won’t favour the poor – COPEC

The Chamber of Petroleum Consumers (COPEC), also raised concerns about the Cylinder Re-circulation Model of Liquefied Petroleum Gas (LPG) distribution, suggesting it may burden poor Ghanaians.

The Chamber’s Executive Director, Duncan Amoah, noted the inflexibility of the programme and suggested the old system of distribution be employed alongside the new module ordered by President Nana Akufo-Addo.

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By: Marian Ansah & Caleb Kudah/citifmonline.com/Ghana

The post LPG distributors threaten strike over cylinder re-circulation policy appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Atomic Junction gas explosion, which occurred on Saturday, claimed the lives of seven people, injuring over a hundred others.

[contextly_sidebar id=”O9jEZPmMDPFNuFJNeU3IRX4jyq5aS3Cl”]Following the explosion, scores of students of the University of Professional Studies, Accra (UPSA), on Monday staged a demonstration on campus against the siting of a fuel station close to the school.

Similar protests have taken place in other areas in Accra. The government has indicated that it will come out with some decisions at cabinet, to deal address the situation, and prevent such fires in thee future.

Speaking at a press conference today [Thursday], the CEO of the AOMC, Kwaku Agyemang-Duah, urged the government not to succumb to panic reactions from a section of the public, but come out with a holistic policy.

“The unparalleled marauding, demonstrations against some legitimate retail outlets and hitting the panic button “exemplified” by the wanton closure of retail outlets in a rambo style by some unrepentant MMDCEs in an industry regulatory by specific bodies, is unwarranted and must be condemned with all the attempt it deserves,” he said.

“This has innate results of culminating in chaos and anarchy in the society and inflaming passion among the citizenry thereby creating disaffection for OMCs/LPGMs,” he warned.

Mr. Agyemang-Duah stated that, OMCs/LPGMs are neither ‘monsters’ nor ‘criminals’, but are Ghanaians making a living by legally investing in the petroleum industry.

“Some marketers have their administrative offices within the confines of such outlets. Therefore, our intent to have a safe operation of our outlets cannot be in doubt,” he maintained.

Mr. Agyemanag-Duah suggested that, the situation rather calls for a sober deep-seated thought, through unbiased and unfettered investigations to unearth the root causes, and furnish the nation with sustained corrective and preventive actions, which will inform the public in a positive manner, whilst consolidating or improving the existing industry standards for public safety.

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By: Lawrence Segbefia/citibusinessnews.com/Ghana

The post Don’t stampede gov’t into closing fuel stations – OMCs appeared first on Citi 97.3 FM - Relevant Radio. Always.

Pressure Group, Occupy Ghana, called for the temporary closure of all on-site dispensing of LPG which must be sustained at least until the appropriate state agencies enforce rules that guarantee the safety of gas companies’ operations.

[contextly_sidebar id=”WkbwmWHOtvy4PBgmiYlHa55ABmIxtpw0″]Their call comes in the wake of the multiple gas explosions that rocked the Atomic Junction on Saturday, killing seven people and injuring about 132 others.

However, in an interview with Citi News, the Public Relations Officer of the Association, Kwame Owiredu, dismissed these assertions, stating that their outlets across the country had put safety measures in place to ensure such incidents do not occur.

He attributed Saturday’s incident to a failure by the attendants at the gas station to use the electric discharge pumps which had been put in place for the dispensing of gas into the Bulk Road Vehicles (BRVs).

“We have, on our own as part of the safety standards created what we call the electric discharge pumps. So at most of our outlets, the Bulk Road Vehicle (BRV) trucks do not discharge gas using their own engines,” he said.

“There are electric discharge pumps where when the BRV comes, the pumps are fitted onto them and the discharge is done. It’s quite unfortunate that our outlet at the explosion site wasn’t using that particular discharge pump at the time of the explosion. On issues of safety, in respect of the discharge of the BRV, we have directed our members to use the electric pump system. If you visit any of our outlets, that’s the system that they are using, most of them are using it” he explained.

In a statement copied to citifmonline.com, OccupyGhana, quoting citifmonline.com, lamented that there had been 8 major gas explosions in the country within four years, adding that regulators needed to “produce a permanent solution to this issue.”

“OccupyGhana® would recommend the banning of all on-site dispensing of gas. We side with the decision of the National Petroleum Authority to regulate the downstream gas distribution by phasing out refilling of LPG gas at LPG dispensing stations. Thus, instead of having LPG dispensing outlets, all gas cylinders will be filled by cylinder bottling plants for onward distribution to retail outlets,” it said.

But the LPG Marketers Association believes that despite the “unfortunate” incident at Atomic Junction, it would be unfair to conclude that all the outlets are accidents waiting to happen.

“It’s not the case that every LPG outlet is an explosion in waiting or is a deathtrap for Ghanaians,” he added.

“We do admit that the explosion on Saturday was an unfortunate situation, but it doesn’t make every outlet or LPG dispensing point a death trap, it cannot be the case. You don’t stop one from using a system which you criticize and use it just on a different platform.”

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By: Edwin Kwakofi/citifmonline.com/Ghana

The post Our outlets are not death-traps – LPG Marketers appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Tanker Drivers Association expressed outrage over some components of the draft policy saying it will put its members out of business and create a monopoly for oil company Puma Energy.

[contextly_sidebar id=”rpd8OBQdifX7UMM3aHBF8Jm3rAu6CqlX”]The drivers also planned to demonstrate against the government if it did not suspend the policy.

The Ministry may have been compelled by the threat by the Tanker Drivers Union and members of the general public who were also anger by plans to create monopoly over  for one company.

A letter signed by the Acting Chief Director of the Ministry, Lawrence Apaalsethe and sighted by Citi News said his outfit suspended the policy for further consultations.

“We have taken note of the progress made so far by the Ministerial sub-committee from under the NPA to review the above policy. We have also taken note of the challenges faced by the sub-committee in the completion of its work as well as the concerns raised by LPGMCs and Tanker Drivers’ Union on the policy.”

“In view of the above, the Ministry wishes to recall the draft National LPG policy for further consultations with all relevant stakeholders especially LPGMCs and Tanker Drivers,” the statement added.

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By: citifmonline.com/Ghana

The post Energy Ministry withdraws LPG draft policy after uproar appeared first on Citi 97.3 FM - Relevant Radio. Always.

According to him, the current module is targeted at collapsing their businesses despite their long operation within the industry.

[contextly_sidebar id=”CQh3wta97DU6QjoLrrJmfTD65gwfKjxr”]Speaking on the Citi Breakfast Show on Thursday, Mr. Owiredu said the policy can be implemented through them due to their experience in the industry.

He said the marketers had been operating in the sector for over 30 years and therefore must be players in any such move which according to government is to provide access to safe LPG in the country.

“We have been in the business of distributing gas for well over 30 years and by our own plans and strategies, we have been expanding our business so if indeed the policy seeks to extend LPG usage, you have to do with through us because we are the operators and we have been serving the populace LPG for 30 years… You are creating a new business by destroying existing legal businesses,” he said

Citi News sources say the policy plan was developed in 2012 but it could not be immediately implemented.

According to Mr. Oweridu, it was surprising the new government had reintroduced the policy because his outfit caused the former government to suspend it due to the challenges it would cause in the sector.

He added that many markers had contracted loans to expand their businesses hence the implementation of the program would see them run into huge debts.

“Some of us have gone for loans to expand our business, so you don’t seek to achieve a policy aim by destroying our businesses…we are the best people to implement the policy,” he said.

In a related development, he Association of Gas Tanker Drivers has hinted of a nationwide strike if the National Petroleum Authority (NPA) fails to withdraw the Cylinder Recirculation Module which is expected to be implemented in September this year.

According to the group, the policy if allowed will throw them out of business, and cause the collapse of all gas filling stations in the country.

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By: Jonas Nyabor/citifmonline.com/Ghana

The post Cylinder Recirculation Module will collapse our businesses – LPG marketers appeared first on Citi 97.3 FM - Relevant Radio. Always.

This according to him, is part of government’s attempt to prevent fuel related accidents that have hit the country.

[contextly_sidebar id=”4zqjV06Be5nt3BSx8UBWJguGUuWF0Gfz”]Speaking at the Luncheon Meeting of the American Chamber of Commerce (Ghana), last week, Mr. Agyarko stated that, “the Ministry is currently reviewing a draft LPG Policy which seeks to provide direction on marketing and distribution of LPG in a safe and efficient manner, and facilitate an increase in access to LPG nationwide”.

Fuel explosions in the country over the past two years, have been on the increase.

The June 3rd 2015 explosion amidst flood, killed over 150 persons. The La Trade Fair explosion also killed 12 persons, whilst the Takoradi gas explosion also left 152 persons sustaining various degrees of injury.

Mr. Agyarko continued that “the new marketing and distribution structure we hope would curtail some of the safety related incidents that have caused loss of life in the country in recent times”.

Some of the incidents have been attributed to poor safety standards, whilst others are said to have occurred from negligence.

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By: Obrempong Yaw Ampofo/citifmonline.com/Ghana

The post Energy ministry seeks new safe LPG distribution policy appeared first on Citi 97.3 FM - Relevant Radio. Always.