The Chamber of Oil Marketing Companies (COMAC) and the Chamber of Bulk Oil Distributors (CBOD) have condemned the alleged unlawful diversion of funds from the LPG Fund to the Ghana Cylinder Manufacturing Company (GCMC).
According to COMAC and CBOD, the illegal diversion of the LPG Fund constitutes a flagrant breach of statutory mandate, a dangerous sabotage of national energy policy.
They further highlighted that the move is unacceptable and a betrayal of public trust.
COMAC and CBOD demanded in their press release that immediate corrective action:
“1. Cease all disbursements to GCMC from the LPG Fund immediately
2. Reverse any allocations already made to GCMC and restore funds to their lawful purpose
3. Reaffirm statutory mandate – Government must publicly confirm that the LPG Fund will finance only bottling plants, CRM rollout, and unsafe cylinder withdrawal
4. Guarantee transparency – Implement quarterly public reporting on all fund utilisation with independent audit verification”.
COMAC and CBOD, in a press release issued on February 18, 2026, stated, “The Chamber of Oil Marketing Companies (COMAC) and the Chamber of Bulk Oil Distributors CBOD) categorically condemn and are appalled by the alleged unlawful diversion of funds from the LPG Fund to the Ghana Cylinder Manufacturing Company (GCMC). This action constitutes a flagran preach of statutory mandate, a dangerous sabotage of national energy policy, and an unacceptable betrayal of public trust. This alleged move is a blatant deviation from the fund’s original purpose.
The LPG Fund: Purpose and Legal Mandate
The LPG Fund was established under Legislative Instruments LI 2262 (amended) and LI 2481 mplemented by the National Petroleum Authority (NPA) on April 1, 2024, with three explicit, legally binding objectives:
1. USD 44/MT Bottling Plant Margin – To finance the construction and operation of LPG bottling plants nationwide
2. USD 36/MT Cylinder Investment Margin – To fund the Cylinder Recirculation Model (CRM rollout for safe, efficient LPG distribution
These purposes are non-negotiable. The fund was never intended as discretionary capital for ad hoc allocations. Redirecting it to GCMC is not administrative flexibility—it is a statutory violation that demolishes the foundation of Ghana’s LPG safety and infrastructure framework.
The Immediate Danger: Lives at Stake
By channelling funds away from bottling plant development, CRM implementation, and unsafe cylinder withdrawal, the government is actively choosing GCMC’s financial convenience over a holistic mission to increase accessibility of LPG; remove lethal cylinders from circulation; and ensure safe replacement.
Economic Devastation Beyond the Industry
This fund misappropriation extends far beyond industry grievances. It represents
- Destruction of private investment – Legitimate operators who invested billions based on the government’s statutory commitments now face collapse
- Elimination of jobs – Thousands of livelihoods across the downstream value chain are jeopardised
- Consumer exploitation – Ordinary Ghanaian households will absorb costs through higher prices, reduced supply, and continued safety risks
- Investor flight – Both domestic and international capital will flee a jurisdiction where statutory guarantees mean nothing
Every diverted cedi erodes competitiveness, freezes critical investment, and transfers wealth from productive enterprise to governmental discretion. Ghanaians’ confidence in state institutions- earned over decades-is being weaponised to justify institutional pilferage
Non-Negotiable Demands
COMAC and CBOD demand immediate corrective action:
1. Cease all disbursements to GCMC from the LPG Fund immediately
2. Reverse any allocations already made to GCMC and restore funds to their lawful purpose
3. Reaffirm statutory mandate – Government must publicly confirm that the LPG Fund will finance only bottling plants, CRM rollout, and unsafe cylinder withdrawal
4. Guarantee transparency – Implement quarterly public reporting on all fund utilisation with independent audit verification
. These are not industry requests. These are legal and moral imperatives
The Choice Before Government
This moment demands a decision: Will Ghana uphold the rule of law and protect its citizens, or will it tondone misallocation, erode energy sector credibility, and sacrifice lives for bureaucratic convenience?
COMAC and CBOD will pursue every legitimate avenue– policy, legal, and public–to defend the LPG Fund’s rightful utilisation. We will not permit this fund to become a discretionary slush account. We will not remain passive while statutory protections are shredded. We will not accept anything less than full accountability, decisive leadership, and restoration of fund integrity.
The people of Ghana deserve nothing less than protection, transparency, and respect for the law. The government must now decide which side of that equation it occupies.
We will explore all options to protect our interests and preserve our rights as key stakeholders under the structure”.
See the statement below:
