Liquefied Petroleum Gas (LPG) price will experience a 5% adjustment from today, March 3, 2022.
This follows the restoration of the Price Stabilisation and Recovery Levy (PSRL) on fuel products.
The restored PSRL is ¢0.16 pesewas per litre on petrol, ¢0.14 per litre on diesel, and ¢0.14 per kilogram on LPG.
Experts have warned the restored PSRL and its attendant increase in the price of LPG will further decrease the commodity’s consumption rate and worsen the plight of the ordinary consumer.
LPG is now ¢9.76 per kilogram, translating to about ¢140 for a 14.5 kg cylinder.
The vice president of the LPG Marketers Association, Gabriel Kumi, has blamed the development on the cedi’s poor performance.
According to him, “once the cost keeps moving up and you have constant taxes and levies, you expect that the price will continue to go up.”
In the first pricing window, the price moved from ¢7.89 to ¢8.12 in December 2021. In the second window of January 2022, it went up to ¢8.22.
In the first window of February 2022, the price went up to ¢8.60 and went up again in the second window to ¢9.29.
Currently, the price stands at ¢9.76.
The LPG Marketers Association say the rapid change in prices is affecting their business due to the declining consumption rate of LPG.
“Business is not doing too well because if you look at the statistics, the consumption of LPG is on a serious decline. So if measures are not taken, and the price continues to go up as it is going now, there will be a lot of negative consequences.
“Today, some of our members have started laying off workers, and we are not growing. The consequences are quite dire,” Gabriel Kumi added.
Government has set an agenda to make the product accessible to many by increasing consumption of the commodity from 25% to 50% by 2030.
But many have argued this objective may not be achievable, considering the speed with which the commodity price is skyrocketing.
Meanwhile, the National Petroleum Authority has said it is discussing with the Finance and Energy Ministries to find a manageable solution to the persistent rise in fuel prices.
It says the engagements will largely discuss the possible removal of some taxes on petroleum products.