LPG Price build-up under review to guarantee return on investment

By Newscenta On Sep 29, 2022

As part of the implementation of the Cylinder Recirculation Model (CRM), government is reviewing the price build-up for Liquefied Petroleum Gas (LPG)

The CRM required some infrastructural establishments and that the review would guarantee a return on investment made towards ensuring the safe distribution of LPG.

Deputy Minister of Energy Mr. William Owuraku Aidoo announced this at the opening of the 2022 Ghana International Petroleum Conference (GhIPCon) in Accra on Wednesday, September 28, 2022.

The implementation of the CRM requires the introduction of LPG Bottling Plants, Bulk Cylinder Transportation, Cylinder Warehousing, Cylinder Exchange Points and Cylinder Delivery infrastructure.

Therefore, he said the Price Build-Up of the LPG is being reviewed to guarantee a return on investment made in LPG infrastructure for the safe distribution of LPG as a clean cooking fuel while rationalising the price of LPG for consumers,” he said.

Currently, a 14kilogramme LPG is trading at an average of GH₵160, representing significant increase making the product very expensive and forcing many to resort to other cooking fuels like charcoal and firewood with consequences for deforestation and increase in carbon emissions.

Industry players blame the continuous rise of local LPG prices on the unsteady international market and cedi depreciation.

Mr. Aidoo said the CRM, which is under the auspices of the National Petroleum Authority (NPA), is expected to increase access to LPG and ensure safe delivery to end users.

He explained that Energy Ministry’s new Programme called the LPG for Development (LPG4D) also aimed at consolidating the Government’s ongoing efforts towards increasing LPG penetration to at least 50% of Ghanaians by 2030.

The three-day Conference is being organised by the NPA in collaboration with the Ghana Chamber of Bulk Distributors (CBOD) and under the auspices of the Ministry of Energy.

The Conference will highlight the petroleum downstream industry’s perspective and guidance on issues of government policy and regulatory framework.

It is on the theme: “Energy Transition in the African Petroleum Downstream Context: Prospects, Challenges and the way Forward”