CBOD calls for swift resolution of LPGMCs impasse with downstream companies

Accra, Aug. 25, GNA – The Chamber of Bulk Oil Distributors (CBOD) has expressed concern about the recent decision by Liquefied Petroleum Gas Marketing Companies (LPGMCs) to cease business relations with SAGE Petroleum (Quantum Terminals) and Blue Ocean depots in Tema.    

The Chamber, in a statement, said there was “nothing illegal” about the operations of the two indigenous companies as they had complied with the National Petroleum Authority (N PA) Act 691 in the discharge of their business.   

The Chamber said the decision by LPGMCs to cut ties with these companies “is counterproductive” to the LPG promotion efforts by government, NPA and all stakeholders.   

“CBOD stands in solidarity with Quantum Terminals    

and Blue Ocean and calls for a swift resolution that benefits all parties involved. We encourage our brothers from the LPG Marketing Companies (LPGMCs) to collaborate with the regulator and all relevant stakeholders, as none of us in the space pose a threat to each other, but the market will go against those who fail to comply, innovate and evolve. We believe that working together is the key to ensuring nationwide access to safe LPG by 2030,” the statement said.  

 “While we strive to preserve our environment, we must never compromise our safety and efficiency of domestic Gas usage by spreading misinformation. A competitive business environment is essential for innovation and growth. We urge all stakeholders to engage in constructive dialogue to resolve this issue and foster collaboration within the industry,” the Chamber added.  

The Chamber said Quantum and Blue Ocean had over the years contributed to the infrastructural development of the downstream by investing in Quantum Terminals and Tema MultiPurpose Terminals (TMPT), contributing to about 9 per cent and 14 per cent  of private sector petroleum  products storage capacity, respectively.    

Touching on the progress of the Cylinder Recirculation Model, the CBOD said both companies had invested over $30 million in bottling plants, storage facilities, and cylinders, as well as a $70 million investment in the next 18 months.    

The Chamber cautioned against misinformation and disinformation tendencies aimed at undermining the progress of indigenous companies in the sector.   

“Every entity in the value chain must be held accountable. If any of our members are found to be in violation of these regulations, the regulator must take decisive action.    

What we cannot allow is for the hard work and reputation of our industry to be undermined by baseless allegations that seek to use xenophobic ideas to tarnish these respectable companies’ reputation,” the Chamber said.  

GNA