Our FAQs

General Questions

1. What is the mandate of the NPA and how are prices fixed?

The Mandate is quite simple. In 2005, Parliament passed an Act 691 which mandated the National Petroleum Authority, (NPA), to regulate the downstream sector of the petroleum Industry. By downstream, we mean from when crude oil or petroleum products enter the shores of Ghana till it is discharged either to the Refinery or to another depot in the country, the distribution of the petroleum products that are refined or brought into the country .We also have the mandate to regulate every single Petroleum Service Provider (PSP) that provides its service in the Industry. By regulation, we mean we will License that PSPs to operate in the particular sector the license is given for. We’ll also set the standards and the rules and regulation by which that organization in that particular sector will operate. To do this, we have two divisions that is, the Inspectorate, Monitoring &Licensing (IML) division and the Pricing, Planning and Research (PPR).The Inspectorate division handles all the Licenses of all PSPs in ensuring that they abide by the rules and regulations of the industry.

Cylinder Recirculation Model

Introduction
The National LPG Policy seeks to provide direction on marketing and distribution of LPG in a safe and efficient manner, and facilitate an increase in access to LPG nationwide. The goal of the policy is to ensure at least 50% of Ghanaians have access to safe, clean and environmentally friendly LPG for increased domestic, commercial and industrial usage by 2030. The policy seek to achieve the following objectives:
  1. Develop a market-driven structure to ensure safety, increased access and adoption of LPG.
  2. Enhance the capacity of existing regulatory institutions in order to meet the regulatory requirements of the new market structure.
  3. Ensure the existence of robust and standard Health, Safety and Environmental practices in the production, marketing and consumption of LPG.
  4. Ensure the sustainability of supply under the new market structure
  5. Ensure local content and participation in the LPG sub sector in compliance to the Downstream Local Content Policy.
The National LPG policy provides backing for a new LPG distribution model which is centred on the use of the Cylinder Recirculation Model as the market structure.
In order to ensure smooth implementation, LPG refilling plants would be classified into low risk and high risk based on their deficiency in meeting safety standards in a Risk Assessment of all plants by the NPA. The high risk refilling station would be immediately converted into filled cylinder retail and distribution outlets whereas low risk refilling stations would be dedicated to the supply of Autogas only, with improved safety standards.
The proposed new LPG distribution model will begin with the LPG Bulk Distribution Company (LBDC), whose responsibility will be to either import or buy the LPG from local refinery or/and gas processing plant, such as Tema Oil Refinery and Ghana National Gas Company, and store the LPG in their Bulk Storage facility. The LBDC will then sell the LPG in bulk to either the Bottling Plant for the sole purpose of filling the empty cylinders or to the LPG Marketing Companies (LMCs) for bulk sale to industrial end-users - factories, restaurant, and mini-power plants- and also to auto gas users. The LPG Bottling Plant Company will be responsible for filling the empty cylinders for onward distribution to LMCs. The LMCs will be responsible for procuring, branding, and maintaining the cylinders. Specialized trucks will be used to transport the filled cylinders from the bottling plants to the retail stations or exchange points, where consumers will exchange their empty cylinders for filled ones.
A minimum of 4,000Mt capacity storage depot shall be used as the primary receiver of LPG either from imports or from domestic production, with gantry facilities for discharge into BRVs. This will be the preserve of an LBDC.
The LPG bottling plant is expected to have a minimum storage capacity of 250Mt with an automated bottling plant and a filling capacity of 1,000 cylinders per hour. The country will be zoned for the siting of these bottling plants. However, the distribution of their filled cylinders will not be limited to any particular zone.