Gov’t plans eventual ban on imported gas cylinders as GCMC revamp progresses
The Minister for Energy and Green Transition, John Abdulai Jinapor, has told Parliament that the government intends to eventually ban the importation of gas cylinders into Ghana as part of efforts to strengthen local manufacturing.
According to the minister, once the policy takes effect, all cylinders and canisters used in the country will be required to be produced locally.
Dr Jinapor said the ministry is working with the National Petroleum Authority and Ghana National Gas Company to revamp the Ghana Cylinder Manufacturing Company (GCMC) to support the planned transition.
He told Parliament that estimates indicate the company requires about $8 million to fully restore its operations, but $6 million has already been mobilised.
“With the ongoing retooling, the company has been able to double its production this year compared with what happened in 2024,” he said, adding that the government is also providing off-taker agreements and establishing an escrow account to support the company.
As part of the Cylinder Recirculation Model, the minister said he has directed that old and obsolete cylinders be recalled so that GCMC can retrofit them.
He also disclosed that an agreement has been signed with GOIL PLC to act as an off-taker for cylinders produced under the programme.
Dr Jinapor said the government was on course to retool the factory and make it a modern production facility.
Contributing to the debate, the Member of Parliament for Tano South, Charles Asiedu, called for additional measures to accelerate the recovery of the company.
He suggested that the state inject targeted capital to upgrade production lines, introduce modern fabrication technology and strengthen quality control.
He also proposed that government engage private investors and LPG marketing companies in joint ventures to expand market access and encourage public institutions to sell LPG products and accessories sourced from GCMC.
Mr Asiedu further recommended that the company be supported to access regional markets under the African Continental Free Trade Area to take advantage of growing demand for clean cooking solutions.
He noted that increased LPG adoption could reduce reliance on firewood and charcoal, protect forest reserves and improve indoor air quality.
Citing a 2023 industry report by the Ghana Chamber of Bulk Oil Distributors, he said LPG is the primary cooking fuel for about 40 per cent of Ghanaians, with the country targeting 50 per cent penetration by 2030.
Despite its strategic importance, he said GCMC has struggled in recent years, noting that the Auditor-General’s report recorded a GH¢4 million loss in 2021.
In 2023, the company was acquired by the Ghana National Gas Company to keep it operational.
Mr Asiedu said although the acquisition was a positive step, a broader national recovery plan was still needed to revitalise the company, expand LPG access and support Ghana’s climate goals.
Source: classfmonline.com
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