Ghana's LPG consumption declines by 12% from the previous year as prices rise.

According to Gabriel Kumi, Vice President of the Ghanaian Liquefied Petroleum Gas (LPG) Marketers Association, LPG consumption in Ghana has decreased by 12% this year compared to last year, and worse numbers are anticipated for the first quarter of this year because of the ongoing price hikes.

According to Mr. Kumi, the fundamental cause of the decline in LPG usage is its high price, and it will only increase if the price is lowered.

Mr Gabriel Kumi, meantime, cautioned that the price of LPG will remain high in the country unless tariffs are abolished. The warning from the group comes as LPG prices increased by 8% during the current pricing session, defying predictions that they would decrease.

The association encouraged the government to act boldly and lower the price of LPG, emphasizing that if nothing is done, usage will continue to decline.

The Ghanaian government wants to raise LPG penetration and availability to 50% by 2030, which will necessitate a concerted effort to reduce the high prices that consumers are now paying. According to the LPG Marketers Association, eliminating LPG taxes would go a long way toward bringing down LPG's price and boosting consumption.

Mr Kumi claimed that the drop in LPG usage can be simply linked to the hike in the price of the product, and there is no other reason behind the decline. He clarified that LPG has elastic demand, which means that use is very responsive to price changes.

The connection is pleading with the government to reconsider the taxes imposed on the increase in LPG prices and take into account the harm they are doing to consumption.

The requirement for government balance

The call from the LPG Marketers Association emphasizes how important it is for the government to reconcile taxation with consumer affordability. Although taxes are a crucial source of income for the government, they can also be detrimental to consumers, especially in a market where prices are already high.

To develop a solution that serves the interests of both consumers and the government's revenue goals, the Ghanaian government will need to carefully weigh its choices and collaborate with industry stakeholders in the LPG sector.

The increase in LPG costs The problem in Ghana is not unique; rather, it is a reflection of a global trend of rising gasoline prices. Crude oil prices have been continuously rising as a result of a number of factors, including supply shortages and escalating demand.

According to a warning from the International Energy Agency, oil demand will resume to pre-pandemic levels by the end of 2022, pushing prices even higher. The Ghanaian government needs to act swiftly to address the high prices of LPG in the nation in light of this global trend.

But the warning from the Liquefied Petroleum Gas Marketers Association made it clear that the Ghanaian government must act to lower the cost of LPG in the nation.

Eliminating LPG taxes is a big step that might boost usage, but the government will need to carefully balance consumer affordability with its revenue goals.

The Ghanaian government must take decisive action to address the issue of high LPG prices and work with industry stakeholders to find a solution that benefits all parties involved given the rising cost of fuel, which is being felt throughout the world.