Ghana escapes sharp LPG price rise as earlier deal pays off – NPA
LPG prices in Ghana are falling despite rising international prices, as a monthly import arrangement cushions consumers against the increase, the National Petroleum Authority (NPA) has said.
Abass Tasunti, the NPA’s Director of Economic Regulation and Planning, said Ghana had secured its current LPG cargo at a lower price before global prices rose.
Speaking on Joy News’ PM Express Business Edition on Thursday, he explained that the country imports LPG through a tender programme. Each cargo typically covers one month of supply, with the import price fixed for that period.
“And so, the price at which the product was imported is locked in for that one-month period.”
That arrangement means changes in international prices do not immediately affect the cost of cargo already purchased.
Mr Tasunti said this explains why local LPG prices are falling even as international prices point to a significant increase in the next pricing window.
“So, if you look at the next window, for example, the price of LPG is going up significantly, but we've seen LPG dropping instead of it going up, and that's because we've already locked in the price at which we imported the LPG from the previous window, which was lower than the current prices.”
The protection, however, depends on the price secured for each monthly cargo.
Mr Tasunti explained that the same arrangement had contributed to an earlier LPG price increase. When the previous month’s supply was replaced, the new cargo came at a higher price.
Consumers can therefore experience a delayed adjustment when the monthly import price changes. For the coming window, the earlier purchase is providing a cushion.
“But going to this window, for example, we have been shielded again, shielded again from a sharp increase for the next window because we've already locked in the price at which the product was brought in, so that helps.”
He also highlighted pressure on international diesel supplies. He attributed this to disruptions involving Russia, including attacks on refineries and export restrictions.
Mr Tasunti said European countries' release of strategic reserves was helping address the shortage in the short term. However, continued attacks on Russian refineries left uncertainty over supplies.
For Ghana’s LPG consumers, the immediate relief comes from the lower price already secured under the monthly tender programme.
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