LPG Marketers Sound Alarm as Ghana Grapples with Skyrocketing Prices
The Vice-President of Ghana’s LPG Marketers Association, Gabriel Kumi, has revealed that the nation is facing one of the highest LPG (liquefied petroleum gas) prices globally, with consumers feeling the pinch of soaring costs. In an interview with JoyNews’ Upfront on April 25, Kumi shed light on the alarming increase in LPG prices over recent years, painting a stark picture of the challenges confronting both consumers and industry players.
According to Kumi, the price of LPG has experienced a staggering surge, escalating from GH₵5.8 per kilogramme in January 2020 to an eye-watering GH₵16 per kilogramme today. This translates to a substantial jump, with a 14.5kg cylinder, previously priced at GH₵84, now fetching a hefty GH₵232.
Highlighting the severity of the situation, Kumi noted that the recent increment, reaching a six-year high at 15%, has inflicted significant hardship on consumers. Projections further indicate a grim outlook for the industry, with consumption rates expected to plummet to their lowest levels in five years.
When probed about the factors driving this exorbitant hike, Kumi pointed to the imposition of an $80 per metric ton tax on LPG as a primary culprit. This tax, intended to support the government’s cylinder re-circulation model, has compounded the burden on consumers, particularly amidst rising world crude prices.
Furthermore, Kumi criticized the National Petroleum Authority (NPA) for failing to fulfill its promise of reducing the premium imposed on bulk distribution companies by $70 per tonne, exacerbating the situation.
LPG marketers, reeling from the unsustainable prices, have launched a vigorous protest against the government, warning of imminent collapse for LPG plants, particularly in the northern regions. In a direct appeal to the President, Kumi urged immediate intervention to alleviate the plight of consumers, advocating for the removal of all taxes on LPG to boost consumption rates.
Emphasizing the disparity between policy objectives and consumer realities, Kumi underscored the need to address the widening gap in LPG accessibility, which currently favors elites and individuals from middle and upper-class demographics.
As the outcry from LPG marketers reverberates, all eyes are on the government to heed their calls and implement decisive measures to stabilize LPG prices, ensuring equitable access and relief for all Ghanaians.
Thanks for sharing. I read many of your blog posts, cool, your blog is very good.