Ghana's liquefied petroleum gas (LPG) prices have increased by 18.5% for the second half of October, reaching GHS 20.60 per kilogramme. This significant jump has led SEMPA Africa, a sustainable energy advocacy group, to call for immediate government relief for consumers.
The price surge means a typical 15-kilogramme LPG refill now costs approximately GHS 309, an increase of GHS 48 from the previous GHS 261. SEMPA warns this rise will worsen household expenses and undermine Ghana's clean cooking targets. This occurs even as diesel consumers benefit from government interventions, including a GHS 1-per-litre D-Levy suspension.
This development fits into a broader pattern of fluctuating fuel prices and government attempts to manage their impact on citizens. Ghana aims to achieve 50% household LPG use by 2030, a target now jeopardised by rising costs. Previous data from the Centre for Environmental Management and Sustainable Energy shows household LPG use has already declined from 37% to 28%.
In a policy paper dated October 18, SEMPA stated that the National Petroleum Authority's (NPA) minimum price floor for LPG rose by about 25%. This increase, from GHS 11.10 to GHS 13.87 per kilogramme, accounts for approximately 86% of the GHS 3.22-per-kilogramme increase in the average pump price. SEMPA argues that this significant increase in the price floor is not fully explained by published international price and exchange-rate movements, despite a 7.77% rise in international LPG prices.
SEMPA has urged the NPA and the Chamber of Oil Marketing Companies (COMAC) to publish a complete breakdown of LPG prices. This breakdown should include import costs, freight, exchange rates, levies, and marketing margins for every pricing window. The organisation believes greater price transparency is crucial for understanding the true drivers of these increases.
The advocacy group recommends targeted, time-limited relief measures. These could include a temporary partial suspension of levies or margins, or a specific lifeline allocation for registered low-income households. SEMPA also called on the government to assess LPG alongside any extension of diesel relief and to establish an LPG price-stabilisation mechanism in the 2027 Budget.
Higher cooking gas prices could force some households back to using charcoal and firewood. This shift would increase exposure to household air pollution and place more pressure on Ghana's forests. Such a reversal would directly contradict national environmental and public health goals.
SEMPA also warned that rising prices could undermine the NPA's Cylinder Recirculation Model. This model aims to improve safety and reduce the cost of access to LPG for many Ghanaians. The success of this important initiative depends on affordable LPG prices.
The organisation further called for monthly publication of LPG import and stock-cover data. It also requested a funded rollout schedule for the Cylinder Recirculation Model. Additionally, SEMPA recommended a review of import duties and Value Added Tax (VAT) on cylinders, regulators, and efficient cookstoves. Any government relief should prioritise households most affected by rising cooking fuel costs. Such support must have a clear end date and a published fiscal cost to ensure accountability and sustainability.