In their bid to protect local businesses, the LPG Marketing Companies Association of Ghana has announced its decision to cease all business operations with two foreign-owned depots.
In a letter sighted by The High Street Journal addressed to the Gas Tanker Drivers, the association says effective August 12, 2024, they won’t conduct business with Sage Petroleum (Quantum Terminal) and Blue Ocean depots in Tema.
The letter signed by the Chairman of the LPG Marketing Companies Association of Ghana, Mallam Bukari Amadu explains that this decision is part of a broader agenda to safeguard indigenous businesses by protecting their investments and saving Ghanaian jobs.
The association further explained that it will conduct business with all other Bulk Distribution Companies (BDCs) that have stocks with the Quantum Terminal and Blue Ocean depots till Friday, August 9th, 2024.
“We shall continue to do business with all other BDCs that have stocks at these two depots, till the close of business on Friday 9th August 2024. Please note that this leeway DOES NOT include products belonging to SAGE PETROLEUM and BLUE OCEAN,” parts of the letter read.
The letter further indicated that, “Effective Monday, August 12th, 2024, ALL LPGMCs shall cease and desist from doing business with SAGE PETROLEUM (Tema Quantum Terminal) and BLUE OCEAN depots in Tema. Your members are STRICTLY entreated NOT to honour any invitations, orders to load from the two depots mentioned above.”
The association says this move will help to save over 10,000 Ghanaian jobs and protect over $400 million in investments made by Ghanaians over the past 30 years adding that it is part of a protest against what they describe as “foreign aggression.”
This move can be seen as a strong attempt to prioritize locally-owned businesses in the LPG value chain. However, it should be done in a manner that does not result in shortages which can cause LPG prices to increase.
The High Street Journal will follow up with the industry players and update our audience on this development.
