LPG consumption increases by 4% in 2023

Despite facing significant challenges in 2022, Ghana’s Liquefied Petroleum Gas (LPG) consumption saw a modest increase of 4% in 2023.

According to recent data by the Ghana Chamber of Bulk Oil Distributors’ 2023 Industry Report, LPG consumption rose from 305,076 metric tons in 2022 to 317,465 metric tons in 2023.

The surge is attributed to a rebound in economic activities in 2023 after a slow-down in 2022, when the rapid depreciation of the cedi led to negative growth in LPG consumption.

The significant 86% hike in LPG pump prices in 2022 forced many Ghanaians to explore alternative energy sources, leading to a decline in LPG demand.

In the report, the Ghana Chamber of Bulk Oil Distributor’s explained that “LPG consumption declined significantly in 2022 due to the cedi depreciation in 2022. A cursory analysis of the LPG monthly consumption vis-à-vis average monthly prices indicates that generally the relationship between LPG consumption and prices are inversely related.”

It continued by saying that the development in 2022 could slow down “the government’s quest for a national LPG penetration goal of 50% by 2030”

However, despite these challenges, LPG remains the primary cooking fuel for about 40% of Ghana’s population. The convenience, efficiency, and cleanliness of LPG have made it a popular choice for many Ghanaians.

In rural areas, LPG usage increased marginally from 14.8% to 16.5% in 2023, indicating a growing adoption of LPG as a cleaner and more efficient energy source.

Likewise access to LPG in urban areas increased from 51.3% to 56.1%.

This growth is expected to continue as the government and private sector players invest in expanding LPG infrastructure and promoting its use.

The modest growth in LPG consumption is a positive sign for Ghana’s energy sector, which has faced numerous challenges in recent years.

As the country continues to navigate the complexities of the global energy market, it is clear that LPG will play an increasingly important role in meeting the energy needs of Ghanaians.

Source: myjoyonline.com