The Institute for Energy Security has reported a 4.47% decrease in Liquified Petroleum Gas (LPG) usage from January 2020 to December 2023, contrasting with a 6.43% increase in the previous four years from January 2016 to December 2019.

During this time, November 2020 recorded the highest monthly consumption, surpassing 35 million kilograms, while April 2023 had the lowest.

A recent regression analysis by the IES revealed that annual LPG consumption in Ghana varied from 2020 to 2023, reaching a peak in 2021 with 345,478,919 kilograms and falling to 305,076,209 kilograms in 2022.

Monthly consumption also fluctuated, with August, September, and November showing higher usage, averaging over 28 million kilograms, while February and April consistently had the lowest averages.

The ex-pump price per kilogram of LPG more than doubled, rising by 116% from GH¢5.81 to GH¢12.57 between January 2020 and December 2023, compared to a 57% increase from GH¢3.43 in January 2016 to GH¢5.40 in December 2019.

The IES observed varying trends in LPG prices from January 2020 to April 2024, with significant increases noted from November 2022 to April 2024. Factors such as ex-refinery prices, supply and demand dynamics, and policies impacting LPG prices were identified.

The first four months of 2024 saw a significant 30% increase in the average LPG price, climbing to GH¢16.11 per kilogram in April from GH¢12.36 per kilogram in January.

Rises in existing taxes and levies, along with the introduction of new ones, led to a 177% price increase from January 2020 to April 2024. About 16.47% of the variation in LPG consumption in Ghana from January 2020 to December 2023 can be attributed to fluctuations in the LPG price per kilogram.

The remaining variance (approximately 83.53%) is due to other factors such as economic conditions, currency depreciation, restrictions on new LPG outlets, and government policies.