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Business News of Tuesday, 2 August 2022

Source: www.ghanaweb.com

Consumption of LPG drops as price increases, lift ban on LPG retail outlets – Nana Amoasi VII

LPG prices on the rise LPG prices on the rise

Chief Executive Officer of the Institute of Energy Security, Nana Amoasi VII, has noted that data shows that between 2013 and mid-2022 Ghanaians consumed more LPG when prices were lower.

The Institute for Energy Security has however called on the government to ensure broader stakeholder consultations are held before it decides to institute the Liquefied Petroleum Gas (LPG) cylinder recirculation model.

Meanwhile, the Tanker driver’s association, yesterday embarked on a sit-down strike on August 2nd, 2022 as they lament their poor working conditions.

“We understand government intention that is to use the cylinder recirculating policy to deal with safety-related issues and more importantly to make the products more accessible to consumers to drive up demand. However, the issue of accessibility has long been dealt with by the LPG Marketers and retailers themselves. They are currently filling the bottles [cylinders] from the depots and moving them to the doors of consumers.”

“In fact, experience has shown that consumers are rather price sensitive when it comes to the uptake of LPG. It means as the price goes up, demand for the commodity drops. Available LPG data from 2013 to mid-2022 shows that Ghanaians consume more LPG when prices are lower”, he stated.

Nana Amoasi however disclosed that Ghanaians are now using charcoal and firewood as the alternative as LPG prices keep shooting up.

“Today, IES check shows that Ghanaians are abandoning LPG for alternatives such as firewood and charcoal because of the high prices we are seeing on the market. And so, the government will rather want to concern with the price element than the issue of accessibility”.

SSD/FNOQ

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