[ 2012-05-15 ]

Increased demand for LPG affecting its supply on the market
Growing demand for LPG continues to adversely
affect the supply of the product on the
market.Even though the Tema Oil Refinery produces
LPG, this is not enough to meet the demand.

That’s coming from the Association of Oil
Marketing Companies which says dealers have as a
result had to import almost 80 percent of the
market-demand of product.

So to what extent this could be linked to the
partial shortages experienced in recent times and
what measures in place to improve the situation.

The Industrial Coordinator for the association,
Kwaku Agyemang Duah explained to JOY BUSINESS.

““TOR can give us 1250 tonnes per week. Compared
to a demand of 5000, obviously you need to import
to make up. The good thing is that LPG is always
around the shores of this belt and with the
competition intensifying now, if you don’t bring
it you loose your market” he noted

The lack of adequate storage facilities is also
another major constraint and Fuel-Trade, one of
the major players in the oil industry is working
to establish a 6000 metric tonnes storage
facility. Mr Agyemang Duah says the facility
expected to be ready for use by November should
provide a big boost for their industry.

““For instance, if we have 20,000, average
consumption which we know is increasing and we can
safely store even half of that then it gives room
for us to maneuver with the vessel schedules. But
what will be so exciting is that the competition
in the deregulation is going to bring this to the
fore. Now its like a whole lot of infrastructure
are being deregulated and it gives room for the
private investors to come in and help us address
this kind of challenge” he concluded.

Source - Joy News

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