LPG price shoots up by 5%

The price of Liquefied Petroleum Gas (LPG) has gone up by 5%. Vice President of the LPG Marketers Association, Gabriel Kumi, attributes the price hike to the decision by the National Petroleum Authority (NPA) to restore the Price Stabilization and Recovery Levy (PSRL) on petroleum products and the depreciation of the Ghana Cedi against the dollar.

“Once the cost keeps moving up and you have constant taxes and levies, you expect that the price will continue to go up”, he explained.

The LPG Marketers Association say the frequent rise in prices is impacting their business badly because LPG consumption is declining in the country.

“Business is not doing too well because if you look at the statistics, the consumption of LPG is on a serious decline. If measures are not taken, and the price continues to go up as it is going now, there will be a lot of negative consequences. Today, some of our members have started laying off workers, and we are not growing. The consequences are quite dire,” Mr. Kumi added.

Research and Policy Analyst at the Institute for Energy Securities, Emmanuel Derrick Xatse, believes the government should take steps to incorporate more private marketers in the Atuabo Gas project.

“Mandatorily, the importers are supposed to buy from Atuabo, so what government can do is to open up the private sector participation in the marketing of the gas from Atuabo to prevent monopoly, which is affecting the price of the gas.”

He attributed the drop in LPG use to how expensive gas has become in recent years. “Because gas is becoming more expensive, consumers will decline,” he added. “That is why, knowing the negative impact of people using firewood and charcoal on climate change, I believe the government should increase private sector participation in the marketing of Atuabo gas so people can afford to fill their cylinders at a lower cost.”

In the last three months, LPG prices have been rising steadily. The price went up from GH¢7.89 to GH¢8.12 during the first pricing window in December 2021. It jumped to GH¢8.22 in the second window of January 2022. The price increased to GH¢8.60 in the first window of February 2022, and now to GH¢9.29 in the second window.

Currently, the price is GH¢9.76 per kilogram, which means that a 14.5 kg cylinder will cost around GH¢140 to fill.