LPG Consumption Records 4% Growth in 2023 Amid Economic Recovery
Ghana’s Liquefied Petroleum Gas (LPG) consumption witnessed a modest 4% growth in 2023, reaching 317,465 metric tons compared to 305,076 metric tons in 2022, according to the Ghana Chamber of Bulk Oil Distributors’ 2023 Industry Report.
The increase is attributed to a rebound in economic activities following the challenges of 2022, a year marked by the rapid depreciation of the cedi and a significant 86% hike in LPG pump prices.
These factors according to the report, forced many households to switch to alternative energy sources, resulting in a decline in LPG consumption.
“LPG consumption declined significantly in 2022 due to the cedi depreciation. A cursory analysis of LPG monthly consumption vis-à-vis average monthly prices indicates that the relationship between LPG consumption and prices is inversely related,” the Chamber noted in its report.
The report also highlighted concerns over the potential impact of such declines on achieving the government’s national LPG penetration target of 50% by 2030.
Rural and Urban LPG Usage on the Rise
In rural areas, adoption increased from 14.8% to 16.5%, while urban areas saw a rise from 51.3% to 56.1%.
The clean and efficient nature of LPG, coupled with its convenience, continues to make it the preferred cooking fuel for approximately 40% of the population.
Future Prospects
The growth in LPG consumption is expected to persist as both the government and private sector intensify efforts to expand LPG infrastructure and promote its adoption. This aligns with Ghana’s broader energy goals, despite the sector’s ongoing challenges.
As the global energy market evolves, LPG is poised to play an increasingly vital role in addressing Ghana’s energy needs, offering a cleaner and more sustainable solution for households nationwide.
