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Business News of Wednesday, 15 October 2014

Source: B&FT

Subsidise LPG gas – ACEP

The Africa Centre for Energy Policy (ACEP) is asking government to subsidize Liquefied Petroleum Gas (LPG) to sustain the free rural LPG cylinders distribution project.

The programme aimed at halting the burning of charcoal has not yielded the desired results. Reports indicate that beneficiaries of the project are selling the cylinders because they cannot afford to buy gas to refill them.

A Deputy Minister for Energy and Petroleum, John Jinapor had earlier warned that persons caught selling the cylinders will face the full rigors of the law.

Director of Research and Programmes at Africa Centre for Energy Policy (ACEP) John Peter Amewu explained that government should rather make available gas to the underprivileged at a reduced cost to halt the sale of the cylinders.

“Giving out cylinders without any means of affording the gas, its becomes a difficult issue because they need cash to buy the gas and as long as they are not able to in a competitive position to purchase the gas the cylinder distribution is meaningless and that is why we are seeing them sell these cylinders.”

Mr. Amewu said the country must get a good data base and subsidize what actually the consumers need by designating particular gas filling stations to fill the cylinders.

He indicated that the gas cylinders should have special symbols put on them, so they become identifiable by the gas filling stations.

“The gas is what they need so if you provide the gas a little bit cheaper then the cylinder will be put into good use,” he said.