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Surging LPG Prices Threaten Ghana’s Clean Energy Efforts in Transport Sector

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Accra, Ghana – The recent hike in Liquefied Petroleum Gas (LPG) prices is posing a significant challenge to Ghana’s efforts to promote clean energy in its transport sector. Despite being a cleaner and safer alternative to diesel and petrol, the rising costs of LPG are causing a decline in its usage, with over 32,000 vehicles licensed to use LPG facing difficulties.

The addition of US$80/MT to the Price Build-Up (PBU) by the Ministry of Energy and the National Petroleum Authority (NPA) has made LPG the most expensive petroleum product in the country, surpassing diesel and petrol. This price hike is leading many LPG vehicle users to revert to unclean fossil fuels, hindering Ghana’s efforts to meet its Nationally Determined Contributions (NDC) targets and achieve Sustainable Development Goal 7.

Critics are calling for the urgent suspension of the US$80/MT charge at LPG filling stations to make LPG more affordable for vehicle users. Redirecting this fee towards Cylinder Recirculation Model (CRM) exchange points could also help maintain household LPG consumption without derailing progress.

The government’s clean energy goals and the wider adoption of environmentally friendly fuels in Ghana’s transport sector depend on fair practices that support the growth of LPG usage. The surge in LPG prices threatens to undermine these efforts, and urgent action is needed to address this issue.

Ruth Abla ADJORLOLO