Compared to the increase of around 6.43% in the four years before, from January 2016 to December 2019, the Institute for Energy Security has shown a drop of approximately 4.47% in the consumption of liquefied petroleum gas (LPG) between January 2020 and December 2023.
November 2020 had the most monthly consumption during this time, surpassing 35 million kg, while April 2023 had the lowest.
According to a recent regression study by the IES, Ghana's total annual LPG consumption varied between 2020 and 2023, reaching a high of 345,478,919 kilograms in 2021 and falling to 305,076,209 kilos in 2022.
The amount used each month also fluctuated; certain months, including August, September, and November, used more on average than 28 million kilos, while February and April always had the lowest averages.
Between January 2020 and December 2023, the ex-pump price per kilogram of LPG more than doubled, rising by 116% from GH¢5.81 to GH¢12.57. This is in contrast to a 57% growth between January 2016 (GH¢3.43) and December 2019 (GH¢5.40).
From January 2020 to April 2024, the IES found patterns in LPG prices that were subject to variation, with notable increases reported between November 2022 and April 2024. It was determined which factors affect LPG pricing, including supply and demand dynamics, ex-refinery prices, and policy.
The average price of LPG increased by 30% in the first four months of 2024, from GH¢12.36 per kilogram in January to GH¢16.11 per kilogram in April.
The 177% increase in prices between January 2020 and April 2024 was caused by both the introduction of new taxes and levies and increases in already-existing ones.
Price changes for LPG per kilogram may account for around 16.47% of the difference in LPG use in Ghana between January 2020 and December 2023.
Other variables include government policy, currency devaluation, limits on new LPG outlets, and economic circumstances are responsible for the remaining difference, which amounts to around 83.53%.
