COMAC, CBOD demand halt to LPG Fund disbursements to GCMC
21st February 2026
The Chamber of Oil Marketing Companies (COMAC) and the Chamber of Bulk Oil Distributors (CBOD) have called for the immediate suspension of all disbursements from the LPG Fund to the Ghana Cylinder Manufacturing Company (GCMC), warning that continued allocations could breach the legal framework governing downstream LPG infrastructure financing.
In a statement dated February 18, 2026, the two industry bodies described the alleged diversion of resources from the LPG Fund to GCMC as unlawful, arguing that it contravenes the statutory mandate of the fund and threatens investor confidence in Ghana’s downstream petroleum sector.
The LPG Fund was established under Legislative Instruments LI 2262 (as amended) and LI 2481, and implemented by the National Petroleum Authority (NPA) in April 2024. It is structured around defined margins, including USD 44 per metric tonne for bottling plant development and USD 36 per metric tonne for cylinder investment, to support the nationwide rollout of LPG bottling plants and the Cylinder Recirculation Model (CRM).
According to COMAC and CBOD, these allocations are legally ring-fenced to finance the construction and operation of LPG bottling plants, implement the CRM and facilitate the phased withdrawal of unsafe cylinders from circulation.
They contend that redirecting the funds to GCMC falls outside the fund’s legally defined objectives and risks undermining Ghana’s broader LPG safety and distribution framework.
Beyond legal implications, the chambers cautioned about potential economic fallout. They noted that private sector operators who invested significantly in anticipation of consistent policy implementation now face uncertainty, while thousands of jobs within the downstream value chain could be at risk if infrastructure projects are delayed or halted.
The groups further warned that any perceived weakening of statutory guarantees could dampen both local and foreign investor confidence, particularly at a time when Ghana is seeking to expand LPG access and deepen private sector participation in midstream and downstream infrastructure.
COMAC and CBOD are therefore demanding the reversal of any allocations already made to GCMC from the LPG Fund and are urging government to publicly reaffirm the original mandate of the fund.
They also called for enhanced transparency, including regular public reporting and independent audits of the fund’s utilisation.
The two chambers indicated that they are prepared to pursue policy and legal avenues to protect the integrity of the LPG Fund structure if their concerns are not addressed.