The price of Liquefied Petroleum Gas has shot up in recent times. The Institute of Energy Security and the Chamber of Petroleum Consumers projected an increase in the price of the commodity in the second pricing window in November which started on November 16, 2022.
“The Institute for Energy Security (IES) recognizes the significant jump in the price of Liquefied Petroleum Gas (LPG) on the international market as well as the marginal stability in the local currency and predicts that the price of the commodity on the local market will rise by roughly 4%,” a statement by the IES said.
With the nature of LPG, the LPG Marketers Association fear a 25% decline in the consumption of the product by the close of 2022.
The Vice President of the Association, Gabriel Kumi, stated that the taxes on the product have been a contributing factor to the increase in the price.
He calls on the government to reduce those taxes adding that “the use of LPG will decline by about 25%” due to the price–sensitive nature of the good.
He was quoted by citibusinessnews reports.
A kilogram of LPG has increased by almost 10% according to checks by GhanaWeb at some pumps.
Kumi however added that the price increase will continue until an intervention happens.
“We are advocating for government to ensure that LPG is affordable …. we are calling on the government to remove taxes from the commodity. We believe LPG must be tax-free,” he said.