Ghana’s LPG Consumption Rises by 4% in 2023 Amid Economic Rebound

 Despite significant challenges in 2022, Ghana’s Liquefied Petroleum Gas (LPG) consumption increased by 4% in 2023, according to the Ghana Chamber of Bulk Oil Distributors’ 2023 Industry Report. LPG consumption rose from 305,076 metric tons in 2022 to 317,465 metric tons in 2023, attributed to a rebound in economic activities following a slow-down in 2022.

The depreciation of the cedi in 2022 led to an 86% hike in LPG pump prices, prompting many Ghanaians to seek alternative energy sources, which caused a decline in LPG demand. The report indicates an inverse relationship between LPG consumption and prices, with higher prices leading to lower consumption.

The report also warned that the 2022 downturn could slow the government’s goal of achieving 50% national LPG penetration by 2030. Nevertheless, LPG remains the primary cooking fuel for about 40% of Ghana’s population, valued for its convenience, efficiency, and cleanliness.

LPG usage in rural areas increased marginally from 14.8% to 16.5% in 2023, while urban access rose from 51.3% to 56.1%. This growth is anticipated to continue as the government and private sector invest in expanding LPG infrastructure and promoting its use.

The modest growth in LPG consumption is a positive sign for Ghana’s energy sector, which has faced multiple challenges in recent years. As the country navigates the complexities of the global energy market, LPG is poised to play an increasingly important role in meeting the energy needs of Ghanaians.