The Chamber of Oil Marketing Companies (COMAC) and the Ghana Chamber of Bulk Oil Distributors (CBOD) have threatened strike action over what they describe as the illegal diversion of resources from the LPG Fund to the Ghana Cylinder Manufacturing Company (GCMC).

In a joint statement released in Accra, the two chambers condemned the alleged reallocation of funds, characterising it as a violation of the Fund’s statutory mandate and a blow to Ghana’s national energy framework.

According to the associations, the decision defeats the core purpose for which the LPG Fund was created and undermines public confidence in the management of dedicated statutory funds. They noted that the Fund was established under Legislative Instruments LI 2262 (as amended) and LI 2481 and has been administered by the National Petroleum Authority (NPA) since April 1, 2024.

They stressed that the Fund’s objectives are clearly defined by law and do not permit discretionary or ad hoc reallocations.

Under its framework, a margin of USD 44 per metric tonne from bottling plants is reserved for the development and operation of LPG bottling facilities nationwide. An additional USD 36 per metric tonne is set aside as a cylinder investment margin to finance the rollout of the Cylinder Recirculation Model (CRM), a key initiative aimed at improving safety and efficiency in LPG distribution.

COMAC and CBOD argued that these allocations are legally binding and non-negotiable. Redirecting the funds to GCMC, they said, constitutes a statutory breach that could compromise Ghana’s LPG infrastructure and safety architecture.

They cautioned that the alleged diversion may have immediate safety implications, as it could delay efforts to phase out unsafe cylinders and expand the CRM system to ensure safer access to LPG for households.

The chambers also raised concerns about potential economic fallout. They warned that private sector players who made significant investments based on government-backed statutory assurances could face serious financial strain. The move, they said, may result in job losses along the downstream petroleum value chain, higher consumer prices, supply disruptions, and prolonged safety risks.

In addition, the groups cautioned that investor confidence—both local and international—could suffer if statutory commitments are perceived as unstable or subject to political discretion.

The associations are calling for urgent remedial steps, including an immediate halt to all disbursements from the LPG Fund to GCMC, reversal of any funds already transferred, and the restoration of the monies to their legally approved purposes.

They also urged government to publicly reaffirm the Fund’s mandate and implement quarterly public reporting on its utilisation, backed by independent audits to ensure transparency and accountability.

Describing their demands as rooted in law and public interest rather than industry preference, COMAC and CBOD said the situation presents a decisive moment for government to either uphold statutory obligations and protect public safety or risk eroding trust and credibility within the energy sector.

The chambers vowed to exhaust all legitimate policy, legal and advocacy avenues to ensure the LPG Fund is applied strictly in line with its original statutory intent.