The government has started the distribution of two million cookstoves and its accessories free of charge over the next seven years.
Already, some 6,000 cookstoves and their accessories have been distributed to new users in the rural, peri-urban and urban areas across all districts.
It is part of the Liquefied Petroleum Gas for Development (LPG4D) initiative meant to consolidate ongoing efforts towards increasing LPG penetration to at least 50 per cent by 2030.
The key components of the LPG4D are the Cylinder Recirculation Model (CRM) and the National LPG Promotion Programme (NLPGPP) under which the two million cookstoves are being distributed since September 6, this year.
The Minister of Energy, Dr Matthew Opoku Prempeh, made this known in a speech read on his behalf at the 2022 Ghana International Petroleum Conference (GhIPCON) in Accra yesterday.
He stated that the CRM, under the auspices of the National Petroleum Authority (NPA), was expected to increase access to LPG and ensure safe delivery to end-users.
The implementation of the CRM requires the introduction of LPG bottling plants, bulk cylinder transportation, cylinder warehousing, cylinder exchange points and cylinder delivery infrastructure.
“Hence, the price build-up of the LPG is being reviewed to guarantee a return on investment made in LPG infrastructure for the safe distribution of LPG as a clean cooking fuel, while rationalising the price of LPG for consumers,” he said.
The conference
Under the theme: “Energy Transition in the African Petroleum Downstream Context: Prospects, Challenges and the Way Forward”, the fifth edition of the conference seeks to focus on the readiness of Africa’s petroleum downstream on changes coming in the next few decades.
The conference is expected to end tomorrow.
The annual conference is designed to actively bring to the fore the petroleum industry’s perspective and guidance on issues of governmental and regulatory policy, along with best practices for the advancement of the industry not only in Ghana, but across the West African sub-region and beyond.
It is organised by the NPA, in partnership with the Chamber of Bulk Oil Distributors, the Ministry of Energy and the Africa Refiners and Distributors Association.
The Vice-President, Dr Mahamudu Bawumia, opened the conference through a televised presentation.
Petroleum downstream
The Chief Executive Officer of the NPA, Dr Mustapha Abdul-Hamid, noted that Africa’s petroleum downstream sector was entering into a new era.
He explained that as the world looked to accelerate its transition away from fossil fuels, the pressures on industries were mounting.
“We are all exposed to the global energy transition, as our countries depend on oil and gas revenues,” he said.
He stated that the country’s petroleum downstream industry, which had an annual sales value of about GH¢32.94 billion, according to 2021 estimates, contributed 7.2 per cent of the gross domestic product.
That, he said, represented a 41 per cent increase in demand for fossil fuels as compared to 2020.
“This is an unprecedented surge in consumption of fossil fuels when the annual average over the years had been between five and seven per cent,” Dr Abdul-Hamid said.
“The reality of fulfilling the energy transition commitment is that there will be further pressure on government spending to ensure that our diversification process meets global needs,” he added.
