CEMSE urges LPG tax and levy suspension as 18.5 per cent price hike threatens household consumption

The Executive Director of the Centre for Environmental Management and Sustainable Energy (CEMSE), Benjamin Nsiah, has called on government to introduce tax, levy or margin suspensions on Liquefied Petroleum Gas (LPG) to cushion consumers against a projected 18.5 per cent price increase from October 16, 2026.

He warns that rising LPG prices could discourage households from using the fuel and undermine Ghana’s target of achieving 50 per cent household LPG penetration by 2030.

Nsiah says the affordability of LPG remains a major factor influencing its adoption, arguing that increases in prices often lead to reduced consumption, particularly among households with limited incomes.

Citing data from the 2021 Population and Housing Census and the Ghana Demographic and Health Survey, he said household LPG use fell from about 37 per cent to 28 per cent, a development he partly linked to rising fuel prices following the outbreak of the Russia-Ukraine conflict.

“Whenever the price of LPG escalates, its consumption declines,” Nsiah said, warning that another increase could further slow progress towards the country’s household penetration target.

He also cautioned that expensive LPG could push households back to traditional fuels such as firewood and charcoal, with serious consequences for public health and the environment.

According to him, the use of these traditional fuels exposes households to harmful smoke and contributes to environmental degradation, undermining efforts to achieve sustainable development.

Nsiah is therefore urging government to consider suspending selected taxes, levies or margins in the LPG price build-up, similar to interventions applied to petrol and diesel.

“We think that LPG, just like the white products of diesel or petrol, must also have certain interventions,” he said.

He argues that making LPG more affordable would help protect household incomes, encourage cleaner cooking practices and support Ghana’s goal of expanding access to LPG by 2030.

By Eben Agyekum-Boateng, 3Business