SEMPA calls for LPG price relief after 18.5% increase

SEMPA Africa has called on the government to introduce targeted relief for liquefied petroleum gas (LPG) consumers following an 18.5 per cent increase in the projected average pump price for the second half of October.

The organisation says the increase could worsen household expenses and undermine Ghana’s clean cooking targets, particularly as diesel consumers benefit from government intervention to cushion fuel costs.

In a policy paper dated October 18, the Sustainable Energy and Mines Projects Advocacy (SEMPA) said the average LPG price for the October 16 to 31 pricing window was GH¢20.60 per kilogramme.

The increase translates into an estimated GH¢48 rise in the cost of a typical 15-kilogramme refill, from approximately GH¢261 to GH¢309, based on SEMPA’s calculations.

The organisation noted that the increase came as petrol and diesel prices moved in the opposite direction, with diesel benefiting from government measures that included the suspension of the GH¢1-per-litre D-Levy and a hold on refinery prices to bulk distributors.

SEMPA argued that LPG consumers had not received comparable protection, despite cooking gas being an essential household fuel with implications for public health and environmental sustainability.

The paper attributed much of the LPG price increase to a rise in the National Petroleum Authority’s (NPA) minimum price floor, which increased by about 25 per cent, from GH¢11.10 to GH¢13.87 per kilogramme.

According to SEMPA’s calculations, the increase in the price floor accounted for about 86 per cent of the projected GH¢3.22-per-kilogramme increase in the average pump price.

Although international LPG prices rose by 7.77 per cent over the same period, SEMPA said the increase in the price floor was not fully explained by the published international price and exchange-rate movements.

It has called on the NPA and the Chamber of Oil Marketing Companies (COMAC) to publish a complete breakdown of LPG prices for every pricing window, including import costs, freight, exchange rates, levies and marketing margins.

SEMPA said the current pressure on LPG prices appeared to stem from international prices and currency movements rather than a physical supply shortage. It therefore recommended greater price transparency and targeted, time-limited relief.

The proposed measures include a temporary partial suspension of levies or margins, or a targeted lifeline allocation for registered low-income households. The organisation also urged the government to assess LPG alongside any extension of diesel relief and make provision for an LPG price-stabilisation mechanism in the 2027 Budget.

The policy paper warned that higher cooking gas prices could push some households back towards charcoal and firewood, increasing exposure to household air pollution and pressure on forests.

Ghana has committed to achieving 50 per cent household LPG use by 2030. However, SEMPA cited figures from the Centre for Environmental Management and Sustainable Energy indicating that household LPG use had declined from about 37 per cent to 28 per cent.

The organisation also warned that rising prices could undermine the NPA’s Cylinder Recirculation Model, which is intended to improve safety and reduce the cost of access to LPG.

SEMPA further called for monthly publication of LPG import and stock-cover data, a funded rollout schedule for the Cylinder Recirculation Model, and a review of import duties and VAT on cylinders, regulators and efficient cookstoves.

It said any government relief should prioritise households most exposed to rising cooking fuel costs, with support carrying a clear end date and a published fiscal cost.