Ghana’s government intends to eventually prohibit the importation of liquefied petroleum gas (LPG) cylinders as it works to increase local production capability and access to cleaner cooking fuels.
Energy and Green Transition Minister John Abdulai Jinapor told Parliament that once the policy is implemented, LPG distributors will have to source cylinders locally rather than relying on imports.
The initiative is part of a larger effort to revitalize the state-owned Ghana Cylinder Manufacturing Company Limited (GCMC), which has suffered for years despite playing a critical role in the country’s gas sector.
“I can confirm that so far, estimates show that the company needs about $8 million to be able to revamp it, but we have been able to mobilise about $6 million for them,” Mr. Jinapor told the House.
He stated that the government was collaborating with the National Petroleum Authority and the Ghana National Gas Company to improve the facility and increase its capacity.
According to the minister, early signs of recovery have already shown, with production at the company doubling this year compared to 2024.
“I believe so. “We are on track to revamp and retool Ghana Cylinder,” he stated.
As part of the reforms, the ministry has ordered the recall of old and obsolete cylinders so that they can be repaired or replaced with new ones manufactured locally. Authorities have also struck an arrangement with the state-owned oil marketing firm GOIL PLC to function as an off-taker and distributor of cylinders manufactured under Ghana’s cylinder recirculation scheme.
The policy push comes as Ghana attempts to promote the use of LPG in households and reduce reliance on firewood and charcoal, which remain the most common cooking fuels in much of the country.
Despite its importance in achieving that goal, the Ghana Cylinder Manufacturing Company has struggled financially in recent years. According to the Audit Service report, the firm lost around GH¢4 million in 2021. In 2023, the Ghana National Gas Company purchased the plant in an effort to avoid its collapse and restart operations.
Charles Asiedu, a Tano South member of parliament who addressed the issue on the House floor, encouraged the government to increase investment in the sector and encourage collaboration with private investors and LPG marketing businesses to develop the market for locally produced cylinders.
He also urged that Ghana take use of opportunities provided by the African Continental Free Trade Area to supply cylinders to surrounding nations where demand for cleaner cooking solutions is increasing.
Beyond manufacturing, the government intends to strengthen the country’s LPG supply chain. GOIL, the state oil marketer, aims to invest about $50 million to upgrade storage and distribution facilities to meet rising demand.
Officials say the campaign to increase LPG use and local production is part of a larger energy transformation strategy aimed at lowering home energy costs, reducing emissions, and expanding Ghana’s domestic gas market.