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The Minister of Energy and Green Transition, John Abdulai Jinapor, has told Parliament that the government intends to eventually ban the importation of Liquefied Petroleum Gas (LPG) cylinders into the country as part of efforts to boost local manufacturing.
He said once the ban is implemented, the ministry would insist that all cylinders and canisters used in the country must be procured locally.
To achieve that objective, he explained that his ministry was working with the National Petroleum Authority and the Ghana National Gas Company to revamp the Ghana Cylinder Manufacturing Company Limited (GCMC).
“I can confirm that so far estimates show that the company needs about $8 million to be able to revamp it but we have been able to mobilise about $6 million for them,” he said.
Contributing to a statement on the floor of Parliament by the Member of Parliament for Tano South Constituency, Charles Asiedu, on the urgent need to revitalise the Ghana Cylinder Manufacturing Company Limited, Mr Jinapor said the ongoing retooling exercise had already yielded results.
According to him, the company had doubled its production this year compared with its output in 2024.
“I think so we are on course to revamp Ghana Cylinder and we are on course to retool it.
“Not only are we doing that, we are giving them off-taker agreements and setting an escrow account,” he said.
The minister explained that, as part of the cylinder recirculation model, his ministry had issued a directive for the recall of old and obsolete cylinders to enable the company to retrofit them for continued use.
He said the ministry had also signed an agreement with GOIL PLC to serve as the off-taker for the cylinders under the Ghana Cylinder Recirculation Model.
“So, Mr Speaker, let me assure this House that we are on course towards retooling Ghana Cylinder and making it a modern factory fit for purpose,” he said.
Proposing additional pathways for the rapid recovery of the company, Mr Asiedu urged the state to inject targeted capital into the operations of the Ghana National Gas Company to upgrade the production lines of the cylinder manufacturing company, introduce modern fabrication technologies and improve quality control processes.
He also called for strategic partnerships between the government, private investors and LPG marketing companies to expand the market for locally manufactured cylinders.
“The government and public institutions should be encouraged to sell their LPG products and accessories from the company as a matter of policy,” he said.
Mr Asiedu, a member of Parliament’s Energy Committee, further suggested that the company be supported to take advantage of opportunities under the African Continental Free Trade Area (AfCFTA) to expand into neighbouring markets where demand for clean cooking solutions continues to grow.
He also stressed the need for sustained public education on the health, economic and environmental benefits of LPG usage.
“Mr Speaker, let us remember that a stronger demand will sustain the operations of the company.
“Mr Speaker, let us strengthen performance-based accountability mechanisms within all state-owned enterprises, including the GCMC to ensure transparency and accountability.”
Mr Asiedu said wider adoption of LPG would reduce dependence on firewood and charcoal, help preserve Ghana’s forest reserves, improve indoor air quality and reduce greenhouse gas emissions.
Citing the 2023 industry report of the Ghana Chamber of Bulk Oil Distributors, he said LPG currently serves as the primary cooking fuel for about 40 per cent of Ghanaians.
He added that the country had set an ambitious target of achieving 50 per cent LPG penetration by 2030.
Despite the strategic role of the Ghana Cylinder Manufacturing Company in promoting LPG use, he said the firm had struggled to realise its full potential.
He referred to the Audit Service of Ghana report, which revealed that the company recorded a loss of GH¢4 million in 2021.
In 2023, the company was subsequently acquired by the Ghana National Gas Company Limited in an effort to rescue it from operational collapse.
“Mr Speaker, even though this acquisition signals a step in the right direction, there is an urgent need for a broader and more coordinated national recovery plan,” he said.
“In this regard, the Ministry of Energy and Green Transition had announced earlier last year the establishment of a Joint Budget Implementation Committee to oversee a revitalisation plan.”
Mr Asiedu said a revitalised Ghana Cylinder Manufacturing Company would empower local industry, create jobs, expand LPG access and support Ghana’s climate commitments.
He therefore called on Parliament to support the revitalisation effort with the urgency and seriousness it deserved.
