Ghana Faces Imminent LPG Shortage Amid Supply Chain Disruptions

Ghana’s Liquefied Petroleum Gas (LPG) sector faces the prospect of a significant supply disruption as early as next week, exacerbated by diminishing reserves and regulatory hurdles related to new import protocols introduced by the National Petroleum Authority (NPA).

Market insiders are also bracing for price increases, driven by volatility in global energy markets.

Gabriel Kumi, Vice President of the LPG Marketers Association of Ghana, warned that the country’s current stockpile of LPG could be exhausted within days.

“The 10,000 metric tonnes currently available will be depleted by the end of the week. If no additional shipments arrive by next week, we will face a serious shortage,” Mr Kumi said.

He highlighted that supply has been strained by operational challenges at the Atuabo Gas Plant, which typically meets up to 50% of national demand. For over a month, the facility has been unable to contribute to the country’s LPG supply, forcing reliance on imports.

Mr Kumi stressed the need for the NPA to facilitate swift action by instructing Bulk Distribution Companies (BDCs) to ramp up imports, warning that delays would compound the supply crisis.

“We are dependent on imports, and the only way to avert this looming shortage is for the NPA to ensure that BDCs bring in the necessary volumes,” he said.

The warning comes in the wake of a recent supply shortfall that disrupted parts of the country in late September. At the time, the LPG Marketers Association cautioned that around 60-70% of stations had run dry, placing considerable pressure on the remaining outlets.

Although the Tema Oil Refinery (TOR) has since reported that technical issues contributing to the supply bottleneck have been resolved, confidence in a rapid improvement remains low.

The association has therefore urged swift intervention to avert further market disruptions and protect consumers from escalating prices. However, with global LPG prices already rising, any delay in securing additional supplies could place further inflationary pressure on an already fragile Ghanaian economy.

Source: Norvanreports