National Petroleum Product Consumption Rises by 6% in 2023 Amid Cedi Stability

Ghana’s national petroleum consumption rose by 6% in 2023, reaching 4.49 million metric tonnes, up from 4.22 million metric tonnes in 2022, according to the Ghana Chamber of Bulk Oil Distributors’ (CBOD) 2023 Industry Report.

Of the total consumption, 4.48 million metric tonnes (99.8%) were utilized by the non-power sector, while the power sector accounted for just 0.2%.

The growth in consumption was largely driven by a relative decline in pump prices due to the stability of the Ghanaian cedi in 2023.

Regional Distribution and Emerging Concerns

The Greater Accra Region maintained its dominance as the largest petroleum-consuming region, accounting for one-third of the nation’s total consumption. This reflects the concentration of economic activities in the capital.

Notably, consumption in the Upper East, Upper West, and Northern Regions surged by 86%, 35%, and 32%, respectively.

However, the CBOD report raised concerns that the sharp increases in these northern regions may signal potential smuggling activities.

Growth in LPG Consumption

Liquefied Petroleum Gas (LPG) consumption also recorded a 4% increase, rising from 305,076 metric tonnes in 2022 to 317,465 metric tonnes in 2023.

This growth is attributed to the recovery of economic activities in 2023, following a challenging 2022 characterized by an 84.6% hike in LPG prices driven by the Cedi’s depreciation.