Hike in LPG price will decline consumption – LPG Marketers Association

The LPG Marketers Association has indicated that the consumption of LPG in the country will decline if nothing is done on the increase in prices of the product.

The price of LPG has increased by 5percent now ¢9.76 per kilogram, translating to about Ghc140 for a 14.5kg cylinder.

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However, President Akufo-Addo and his cabinet set a target to increase the consumption of LPG in Ghana. They want consumption to double from 25 to 50percnt by 2030.

Currently, LPG consumption in Ghana stands at 25 percent but the skyrocketing in the price of LPG would render the vision of the President impossible to achieve.

Speaking on Starr Today, Vice President of the LPG Marketers Association, Gabriel Kumi disclosed that already Ghana’s LPG consumption is on the decline and situation he described as very dangerous for the country.

“Once you sit and watch for price to go up uncontrollably it means you are pushing a lot more people from consuming the product. The only thing you can achieve that objective of increasing consumption is rather to get a lot more people to consume the product.

“The increment is on the consumer and it is the consumer who will bear the final brunt of these increments. The last window which began from the 16th of February to the end of February, we were buying LPG at about Ghc9.50 now beginning 1st of March 2022 we are buying LPG at about Ghc9.80 to Ghc10.00, he disclosed.

Mr. Kumi said, unfortunately, Ghana has moved from subsidies to rather full cost recovery and has put as much as almost 20pecent on the product whiles the case is different with sister counties.

“We have always said the first set to achieve that objective is to take all the taxes on LPG. Almost all the prices you pay at the pump for LPG 20percent is made up of taxes. Some of our West Africa neighbors are subsidizing, when you go to Côte d’Ivoire they are subsidizing LPG to the tune of 25 to 30percent,” he added.

Source: Starrfm.com.gh