IES says LPG consumption by households dip by 4.47% in the last 4 years

Liquified Petroleum Gas (LPG) consumption by Ghanaians for the period between January 2020 to December 2023 declined by some 4.47 percentage points according to the Institute for Energy Security (IES).

The decline contrasts with a 6.3% growth in consumption for the period between January 2016 and December 2019.

According to the IES, November 2020 recorded the highest monthly consumption of a little over 35 million kilogramme while April 2023 was found to record the lowest monthly consumption.

“From 2020 to 2023, the total annual LPG consumption in Ghana fluctuated, with a peak in 2021 (345,478,919 kilogramme), and a decrease in 2022 (305,076,209 kilogramme); while monthly consumption also witnessed fluctuations, with some months showing higher consumption than others”, it explained.

“There appears to be some seasonality in consumption over the period analysed, with August, September, and November consistently exhibiting higher consumption figures above 28 million kilogrammes on average, and February and April identified as consistently recording the lowest average consumption”, it added.

The IES notes that the ex-pump price per kilogramme of LPG more than doubled (116% increase) from GH¢5.81 to GH¢12.57 between January 2020 and December 2023, compared to 57% increase between January 2016 at GH¢3.43 and December 2019 at GH¢5.40.

Furthermore, it asserts the ex-pump price of LPG showed fluctuating trends from January 2020 to April 2024, adding, “There were general increasing trends in prices from the beginning of 2020 to mid-2022, with some fluctuations. After mid-2022, there is a significant spike in prices, particularly from November 2022 to April 2024, suggesting potential factors such as ex-refinery prices, supply and demand dynamics, or policies affecting LPG prices in Ghana”.

Between January 2020 and December 2023, the price per kilogramme of LPG more than doubled (116% increase) from GH¢5.81 to GH¢12.57, compared to 57% increase between January 2016 (GH¢3.43) and December 2019 (GH¢5.40).

The IES continued that the first 4 months of the year 2024 have witnessed one of the sharpest increases in LPG average price (30%) in the last 4 years, jumping to GH¢16.11 per kilogram in April first-half from GH¢12.36 per kilogram in January.

The Think Tank added that the increases in existing taxes and levies, and the introduction of new taxes and levies contributed significantly to the 177% increase in LPG price, from January 2020 to April 2024, with the current tax introduction of GH¢1.20 on each kilogramme of LPG aiding in the shoot up in price by roughly GH¢2.35 in a single pricing-window.