- Industry players warns of LPG delivery disruption from Atuabo over pricing dispute
Ghana’s LPG Marketing Companies has warned that deliveries from Atuabo could be suspended unless regulators move quickly to address what it describes as a structural pricing disadvantage for distributors operating in the western supply corridor.
In a letter to the National Petroleum Authority, the LPG Marketing Companies (LPGMCs) said LPG supplied by Sage Petroleum in Atuabo is currently priced at GH¢12.65 per kg, significantly above rates quoted by Tema-based suppliers such as Alpha, Matrix and FuelTrade, which are selling at around GH¢11.65 to GH¢11.66 per kg. The chamber argues that the gap is too wide to absorb commercially and is undermining the viability of LPG operations in the Atuabo zone.
The dispute goes beyond a narrow pricing complaint. It raises a broader question about how Ghana’s LPG distribution framework balances zonal supply arrangements with market competition. LPG Marketing Companies (LPGMCs) says the current structure is forcing marketers in the Atuabo catchment area to operate at a cost disadvantage, with direct implications for truck utilisation, delivery economics and, ultimately, consumer supply.
To resolve the issue, the chamber has proposed two options. The first is for the NPA to direct Sage Petroleum to align its prices with Tema-based suppliers. The second, if that fails, is to lift zonalisation restrictions and allow marketers to load LPG from Tema into the Atuabo zone, restoring what LPG Marketing Companies (LPGMCs) sees as competitive access.
The tone of the letter suggests the industry sees the matter as urgent. LPG Marketing Companies (LPGMCs) said continuing to absorb losses is no longer sustainable and warned that trucks could be grounded and deliveries suspended after the holiday period if no corrective action is taken. The letter was copied to the Ministry of Energy and Green Transition, Ghana National Gas Company, Sage Petroleum and other LPG and oil marketing executives, indicating that the chamber wants the issue treated as a sector-wide supply risk rather than a bilateral commercial disagreement.
For the market, the immediate concern is that any disruption in Atuabo-origin deliveries could tighten LPG supply in affected areas and increase pressure on prices, particularly at a time when energy costs remain politically sensitive. More broadly, the episode exposes the tension between regulated supply structures and the need for pricing flexibility in downstream energy markets.
The NPA has yet to respond publicly. Until it does, the western LPG market remains exposed to the possibility that a pricing dispute could spill into a logistics problem, with consequences for distributors, consumers and confidence in the integrity of the supply chain.
