The Chief Executive Officer of the National Petroleum Authority (NPA), Dr. Mustapha Abdul-Hamid, has stated that the main factors contributing to the volatility of petroleum prices have largely been addressed.During a discussion with selected editors in Accra, he explained that recent price increases were primarily driven by fluctuations in the exchange rate.

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However, he pointed out that the current stability of the Cedi is a promising sign for maintaining more consistent fuel prices moving forward.One ongoing concern, he noted, is the approximately $400 million needed each month by Bulk Oil Distribution Companies (BDCs) to import petroleum products. Despite this, the NPA is taking steps to mitigate rising costs, particularly for Liquefied Petroleum Gas (LPG).

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A new tender programme has been introduced to reduce LPG prices and alleviate the financial strain on consumers.Dr. Abdul-Hamid also called on the Bank of Ghana to set a guaranteed exchange rate for petroleum importers, a move that could help curb speculative pricing and provide much-needed stability to the sector.

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Regarding the Cylinder Recirculation Model (CRM), the NPA CEO discussed the gradual roll-out of the initiative, which is designed to provide LPG Marketing Companies (LPGMCs) a five-year period to recover their investments. This model, he said, will eventually eliminate the need for gas filling stations across the country.

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He emphasized that Ghana and Nigeria are the only countries in West Africa operating gas filling stations, making the CRM a more efficient and sustainable solution for the LPG industry. Dr. Abdul-Hamid also urged bottling companies to raise awareness about the CRM collection points, noting that while 30 percent of Ghana’s LPG supply comes from Atuabo Gas Company, the remaining 70 percent is imported from Europe.

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