Home Business News Federal Government to stop ownership of gas cylinders by consumers

Federal Government to stop ownership of gas cylinders by consumers

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The Federal Government recently stated that Liquefied Petroleum Gas (LPG) consumers won’t be allowed to own gas cylinders anymore as cylinders will become the property of the gas companies.

In a policy made on Tuesday at the stakeholders’ forum on LPG penetration in Abuja, the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, said the policy will ensure the ownership of cylinders lies with the dealers and distributors.

Why this is necessary: According to reports from Punch, Kachikwu said that this was part of the strategy to deepen the penetration of LPG, also known as cooking gas and address issues of safety.

He continued that the Federal Government already reached an agreement with some cylinders manufacturers to give about 600,000 cylinders to LPG distributors on credit, which they would pay back within 18 months.

What this means for roadside retailers: Furthermore, the minister stated that the Federal Government would in the next couple of days commence the clampdown of illegal roadside LPG dealers, while he directed all skid operators of LPG to immediately convert their outlets to micro distribution centres before the enforcement begins.

Also speaking was the Senior Technical Assistant to the Minister of State for Petroleum Resources on Downstream and Infrastructure, Brenda Ataga, who said the purpose of the policy is for the MDC to be able to, at any point in time, discern and discover cylinders that are bad, cylinders that need recertification and cylinders that need to be removed from circulation.

She also added that the MDCs will essentially create and introduce into the market what is called the cylinder exchange programme, whereby the cylinders are owned by the distributors.

In her speech addressing the distributors, she said;

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There is no need for you to decant for anybody that comes in, and that eliminates illegal risks as well. You would fill them at the refill plants that would be tied to you and exchange it with your customers because you know your customers already.

“Your customers pay for only the content, while you own the cylinders and control the management of those cylinders.”

2 COMMENTS

  1. then, the Gas retailer should be ready to pay back the money for the cylinder to the former owner of the cylinder. i.e the final consumer.

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