In a startling revelation, the Vice-President of the LPG Marketers Association, Gabriel Kumi, has disclosed that Ghana is currently grappling with one of the highest LPG (liquefied petroleum gas) prices in the world.
This disclosure was made during an interview with JoyNews’ Upfront on April 25.
According to the Vice-President, the price of LPG has seen a drastic surge over the past few years.
In January 2020, LPG was sold at GH₵5.8 per kilogramme. Fast forward to the present day, and the price has skyrocketed to GH₵16 per kilogramme. This translates to a significant increase, with a 14.5kg cylinder, previously filled at GH₵84, now costing a staggering GH₵232.
The Vice-President further highlighted that the recent increment, which reached a six-year high at 15%, has dealt a severe blow to consumers. Additionally, projections indicate that the industry is poised to witness its worst consumption rates in five years.
When asked about the factors contributing to this exorbitant hike, the LPG marketer pointed out that while world crude prices have experienced a slight uptick, the primary cause of the recent increase stems from the imposition of an $80 per metric ton tax on LPG.
This tax, he explained, is earmarked for the benefit of bottling companies and BDCs (bulk distribution companies) to support the government’s ambitious yet controversial cylinder re-circulation model.
Furthermore, the situation has been exacerbated by the failure of the National Petroleum Authority (NPA) to fulfill its promise of reducing the premium imposed for the benefit of bulk distribution companies by $70 per tonne.
Expressing grave concerns over the current situation, LPG marketers are vehemently protesting against the government.
They argue that LPG plants, particularly those in the five regions of the north, are on the brink of collapse due to the unsustainable prices.
In a plea directed at the President, Kumi called for immediate intervention to alleviate the burden on consumers.
He advocated for the removal of all taxes on LPG, emphasising that it is crucial for increasing consumption rates.
Additionally, he underscored the disparity between policy objectives and the current consumer demographics, noting that LPG is predominantly being consumed by elites and individuals from the middle and upper classes, contrary to previous subsidization efforts aimed at broader accessibility.
As the outcry from LPG marketers intensifies, all eyes are on the government to address the pressing concerns and implement measures to stabilize LPG prices for the benefit of all Ghanaians.
