The Institute for Energy Security (IES) has released a report revealing a 4.47% decrease in Liquified Petroleum Gas (LPG) usage in Ghana between January 2020 and December 2023. This contrasts with a 6.43% growth observed in the preceding four years, spanning January 2016 to December 2019.
The report highlights fluctuations in monthly consumption, with November 2020 marking the highest usage at over 35 million kilograms, while April 2023 recorded the lowest.
Analysis conducted by the IES shows that total annual LPG consumption fluctuated during the period, reaching a peak of 345,478,919 kilograms in 2021 and declining to 305,076,209 kilograms in 2022.
Monthly consumption varied, with August, September, and November showing higher usage, averaging above 28 million kilograms, while February and April consistently recorded the lowest averages.
Moreover, the ex-pump price per kilogram of LPG more than doubled, rising by 116% from GH¢5.81 to GH¢12.57 between January 2020 and December 2023. This is compared to a 57% increase observed between January 2016 (GH¢3.43) and December 2019 (GH¢5.40).
The IES also noted fluctuating trends in LPG prices from January 2020 to April 2024, with significant spikes observed from November 2022 to April 2024. Factors such as ex-refinery prices, supply and demand dynamics, and policies impacting LPG prices were identified.
In the first four months of 2024, there was a notable 30% increase in the average price of LPG, rising to GH¢16.11 per kilogram in April from GH¢12.36 per kilogram in January.
Increases in existing taxes and levies, coupled with the introduction of new ones, contributed to a 177% price hike from January 2020 to April 2024.
Approximately 16.47% of the variation in LPG consumption in Ghana from January 2020 to December 2023 can be attributed to fluctuations in LPG price per kilogram. The remaining variance (about 83.53%) is attributed to other factors such as economic conditions, currency depreciation, restrictions on new LPG outlets, and government policies.
