The Institute for Energy Security has reported a decrease of approximately 4.47% in Liquified Petroleum Gas (LPG) usage from January 2020 to December 2023, compared to a growth of about 6.43% in the preceding four-year period from January 2016 to December 2019.
During this timeframe, November 2020 witnessed the highest monthly consumption, exceeding 35 million kilograms, whereas April 2023 marked the lowest point.
According to a recent regression analysis by the IES, Ghana’s total annual LPG consumption fluctuated, peaking in 2021 at 345,478,919 kilograms and declining in 2022 to 305,076,209 kilograms.
Monthly consumption showed variations, with certain months such as August, September, and November consistently recording higher usage, averaging above 28 million kilograms. Conversely, February and April consistently reported the lowest averages.
Between January 2020 and December 2023, the ex-pump price per kilogram of LPG more than doubled, surging by 116% from GH¢5.81 to GH¢12.57. This contrasts with a 57% increase from January 2016 (GH¢3.43) to December 2019 (GH¢5.40).
The IES observed fluctuating trends in LPG prices from January 2020 to April 2024, with significant spikes noted from November 2022 to April 2024. Factors influencing LPG prices included ex-refinery prices, supply and demand dynamics, and policy changes impacting the sector.
In the first four months of 2024, there was a notable 30% increase in the average LPG price, rising to GH¢16.11 per kilogram in April from GH¢12.36 per kilogram in January.
The surge in prices was attributed to increases in existing taxes and levies, as well as the introduction of new ones, contributing to a 177% price hike from January 2020 to April 2024.
Approximately 16.47% of the variation in LPG consumption in Ghana from January 2020 to December 2023 can be attributed to fluctuations in LPG price per kilogram.