COMAC, CBOD Condemn Alleged Diversion of LPG Fund to GCMC, Demand Immediate Reversal

The Chamber of Oil Marketing Companies (COMAC) and the Chamber of Bulk Oil Distributors (CBOD) have strongly condemned what they describe as the unlawful diversion of funds from the LPG Fund to the Ghana Cylinder Manufacturing Company (GCMC) and have called its immediate reversal.
In a joint statement, the two industry bodies said they were “appalled” by the alleged move, which they argue constitutes a breach of the fund’s statutory mandate and undermines Ghana’s national energy policy framework. According to COMAC and CBOD, the reported redirection of funds represents a deviation from the LPG Fund’s legally defined objectives.
Legal Mandate of the LPG Fund
The LPG Fund was established under Legislative Instruments LI 2262 (as amended) and LI 2481 and implemented by the National Petroleum Authority (NPA) on April 1, 2024.
The fund was created with two primary objectives:
• Financing the construction and operation of LPG bottling plants nationwide through a USD 44/MT Bottling Plant Margin.
• Supporting the Cylinder Recirculation Model (CRM) rollout through a USD 36/MT Cylinder Investment Margin to enhance safe and efficient LPG distribution.
COMAC and CBOD maintain that these objectives are legally binding and not subject to discretionary reallocation. They argue that channeling the funds to GCMC undermines efforts to expand LPG access, improve safety standards, and withdraw unsafe cylinders from circulation.
Concerns Over Safety and Investment
The two chambers warn that diverting funds away from bottling plant development and CRM implementation could stall critical infrastructure projects and compromise safety improvements in the LPG sector.
Beyond safety concerns, they say the alleged misallocation could have broader economic implications, including:
• Threatening private sector investments made under the assumption of statutory guarantees.
• Jeopardizing jobs across the downstream petroleum value chain.
• Increasing costs for consumers through potential supply disruptions and price hikes.
• Damaging investor confidence in Ghana’s regulatory environment.
Industry Demands
COMAC and CBOD are calling for immediate corrective measures, including:

1. The cessation of all disbursements from the LPG Fund to GCMC.
2. The reversal of any allocations already made.
3. A public reaffirmation by government that the fund will be used strictly for its legally mandated purposes.
4. The introduction of quarterly public reporting on fund utilization, backed by independent audits.
   The chambers insist that their demands are grounded in legal and governance principles rather than industry interests alone.
   Call for Accountability
   COMAC and CBOD say they will pursue all legitimate policy and legal avenues to safeguard the integrity of the LPG Fund and ensure compliance with its statutory objectives.
   The statement was jointly signed by Dr. Riverson Oppong, CEO and Industry Coordinator of COMAC, and Dr. Patrick Ofori, Chief Executive Officer of CBOD.
   Attached is the joint release by COMAC and CBOD