The Minister for Energy and Green Transition, John Abdulai Jinapor, has revealed that the government is considering a future ban on the importation of Liquefied Petroleum Gas (LPG) cylinders in order to promote local production and strengthen Ghana’s manufacturing sector.
Thank you for reading this post, don't forget to subscribe!Speaking in Parliament, the minister explained that the policy would ensure that all LPG cylinders and canisters used across the country are produced locally. He noted that the move forms part of efforts to revive the struggling Ghana Cylinder Manufacturing Company Limited (GCMC).
According to Mr Jinapor, the government is collaborating with the National Petroleum Authority and the Ghana National Gas Company Limited to overhaul and modernise the cylinder manufacturing company. He disclosed that about $8 million is required to fully retool the facility, adding that approximately $6 million has already been secured for the project.
He told lawmakers that the ongoing retooling exercise has begun yielding positive results, with the company reportedly doubling its production output this year compared to its 2024 performance.
Mr Jinapor also indicated that the ministry is implementing supportive measures to stabilise the company’s operations, including the provision of off-taker agreements and the creation of an escrow account to secure payments.
As part of the government’s Cylinder Recirculation Model, the minister said directives have been issued to recall old and obsolete LPG cylinders across the country. These cylinders will be refurbished and returned to circulation after undergoing safety checks and retrofitting.
He further revealed that an agreement has been reached with GOIL PLC to serve as the off-taker for cylinders produced under the recirculation model.
Meanwhile, the Member of Parliament for Tano South, Charles Asiedu, has urged the government to accelerate the company’s recovery by injecting additional capital and upgrading its production lines with modern fabrication technology.
Mr Asiedu also advocated strategic partnerships between the government, private investors and LPG marketing firms to expand the market for locally manufactured cylinders. He suggested that public institutions should prioritise purchasing LPG products and accessories from the company as a matter of policy.
He further encouraged the company to explore opportunities under the African Continental Free Trade Area to expand into neighbouring markets where demand for clean cooking energy is rising.
Highlighting the broader benefits of increasing LPG usage, the MP said wider adoption could reduce reliance on firewood and charcoal, protect forest reserves and improve air quality in homes.
Currently, LPG accounts for the main cooking fuel for about 40% of Ghanaian households, with the country targeting 50% penetration by 2030.
However, despite its strategic importance, the Ghana Cylinder Manufacturing Company Limited has struggled financially in recent years. An audit report indicated that the company recorded a loss of GH¢4 million in 2021. In 2023, the firm was taken over by the Ghana National Gas Company Limited in an attempt to rescue it from operational difficulties.
Mr Asiedu stressed that a revitalised cylinder manufacturing company could boost local industry, create jobs, expand access to LPG and support Ghana’s climate commitments. He therefore called on Parliament to back the recovery plan with urgency to ensure the company regains its full operational capacity.