Oil marketers, bulk distributors allage flagrant misuse of LPG Fund, threaten legal action

Two major players in Ghana’s petroleum sector have launched a blistering attack on the government, alleging the illegal diversion of millions of cedis from a statutory LPG fund to the state-owned Ghana Cylinder Manufacturing Company (GCMC), a move they warn could cripple private investment and endanger public safety.

The Chamber of Oil Marketing Companies (COMAC) and the Chamber of Bulk Oil Distributors (CBOD) issued a joint statement on Thursday, condemning the alleged misallocation as a “flagrant breach of statutory mandate” and an act of “dangerous sabotage” against national energy policy.

At the heart of the dispute is the LPG Fund, established by the National Petroleum Authority (NPA) in April 2024 under Legislative Instruments LI 2262 and LI 2481. The fund is financed by specific levies on LPG and is legally mandated for three specific purposes:

· Financing the construction and operation of LPG bottling plants.
· Funding the Cylinder Recirculation Model (CRM) for safe distribution.
· Facilitating the withdrawal of unsafe cylinders from circulation.

‘Diversion Endangers Lives’

The chambers argue that redirecting resources from these legally defined objectives to GCMC is not a matter of administrative discretion, but a direct violation of the law. They warn that starving the core functions of the fund undermines the entire LPG safety framework.

“Government is actively choosing GCMC’s financial convenience over the holistic mission to increase LPG accessibility, remove lethal cylinders from circulation, and ensure safe replacement,” the statement read.

According to COMAC and CBOD, the alleged diversion carries severe economic consequences beyond the energy sector, including:

· Destruction of private investment: Operators who invested billions of cedis based on statutory assurances face potential collapse.
· Job losses: Thousands of livelihoods along the LPG value chain are threatened.
· Consumer exploitation: Households may bear the burden through higher prices and continued safety risks.
· Investor flight: The move could deter both domestic and foreign investors who require respect for statutory guarantees.

“Every diverted cedi erodes competitiveness, freezes critical investment, and transfers wealth from productive enterprise to governmental discretion,” the chambers warned, stating that such actions undermine public confidence in state institutions.

Demand for Immediate Corrective Action

COMAC and CBOD have issued a list of what they call “non-negotiable corrective measures” for the government, demanding:

1. An immediate cessation of all fund disbursements to GCMC.
2. The reversal of any allocations already made and the restoration of funds to their lawful purposes.
3. A public reaffirmation that the fund will be used exclusively for bottling plants, CRM rollout, and cylinder withdrawal.
4. A guarantee of transparency through quarterly public reports and independent audit verification.

“These are not industry requests. These are legal and moral imperatives,” the statement emphasized.

‘We Will Not Permit This Fund to Become a Slush Account’

The chambers have thrown down the gauntlet to the government, stating it must now decide whether to uphold the rule of law or condone “bureaucratic convenience at the expense of safety and public trust.”

Pledging to pursue all available avenues, COMAC and CBOD vowed to defend the fund’s statutory integrity.

“We will not permit this fund to become a discretionary slush account. We will not remain passive while statutory protections are shredded,” the statement concluded. “We will not accept anything less than full accountability, decisive leadership, and restoration of fund integrity.”

---