Energy and Green Transition Minister John Abdulai Jinapor told Parliament that once the policy is implemented, LPG distributors would be required to source cylinders locally rather than rely on imports.
The move forms part of a broader effort to revive the state-owned Ghana Cylinder Manufacturing Company Limited (GCMC), which has struggled for years despite its strategic 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 lawmakers.
He said the government was working with the National Petroleum Authority and the Ghana National Gas Company to upgrade the plant and expand its capacity.
According to the minister, early signs of improvement have already emerged as production at the company has doubled this year compared with 2024.
“I think so. We are on course to revamp Ghana Cylinder, and we are on course to retool it,” he said.
As part of the reforms, the ministry has directed the recall of old and obsolete cylinders so they can be refurbished or replaced with new ones produced locally. Authorities have also signed an agreement with state-owned oil marketing firm GOIL PLC to act as an off-taker and distributor for cylinders produced under Ghana’s cylinder recirculation programme.
The policy push comes as Ghana tries to increase the use of LPG in households and reduce reliance on firewood and charcoal, which remain the dominant cooking fuels in much of the country.
According to the Ghana Chamber of Bulk Oil Distributors, LPG currently accounts for the main cooking fuel for about 40 per cent of the population. The government is targeting 50 per cent penetration by 2030 as part of efforts to improve air quality and reduce pressure on forest reserves.
Despite its importance to that goal, the Ghana Cylinder Manufacturing Company has struggled financially in recent years. An Audit Service report showed the firm recorded a loss of about GH¢4 million in 2021. In 2023, the Ghana National Gas Company acquired the plant in a bid to prevent its collapse and restore operations.
Charles Asiedu, the member of parliament for Tano South who raised the issue on the floor of the House, urged the government to inject additional capital into the sector and encourage partnerships with private investors and LPG marketing companies to expand the market for locally produced cylinders.
He also suggested that Ghana take advantage of opportunities under the African Continental Free Trade Area to export cylinders to neighbouring countries where demand for cleaner cooking solutions is rising.
Beyond manufacturing, the government is also seeking to strengthen the country’s LPG supply chain. State oil marketer GOIL plans to invest around $50 million to expand storage and distribution infrastructure to support growing demand.
Officials say the push to expand LPG use and local manufacturing forms part of a broader energy transition strategy to cut emissions, lower household energy costs and deepen Ghana’s domestic gas market.
