The cost of liquefied petroleum gas (LPG) in Ghana has been on the rise, causing concerns among consumers and experts.
Initially priced at 5.81 cedis per kilogram in January 2020, it has since surged to 182 cedis by December 2023, with some outlets even charging as high as 230 cedis by March 2024.
The decision to remove subsidies on LPG in 2015 has led to the imposition of multiple taxes and levies on the commodity. The aim of subsidizing LPG was to promote its usage as a cleaner alternative to wood fuels and reduce environmental degradation and respiratory issues associated with wood fuel pollution.
Data from previous years reveals a trend where higher LPG prices correlate with lower consumption and vice versa. The average ex-pump price increased from 5.22 cedis in 2020 to 12.26 cedis in 2023, leading to fluctuations in consumption levels.
Despite efforts to facilitate the implementation of the Cylinder Recirculation Model through an $80 per metric ton tax on LPG, the Liquified Petroleum Gas Marketing Companies Association of Ghana opposes the tax. They argue that burdening consumers with taxes that indirectly benefit private investments is unfair, calling for fair competition instead.
