The price of Liquefied Petroleum Gas (LPG) has remained unchanged across various stations in the country for several weeks, despite recent reductions in the prices of other fuel products like petrol and diesel. Last week, petrol and diesel prices saw marginal decreases, yet LPG prices have stayed the same, raising questions among consumers.
According to Gabriel Kumi, Vice President of the LPG Marketers Association of Ghana, one key factor behind this decision is the recent depreciation of the Ghanaian cedi.
He explained that the currency’s weakening against major trading currencies has significantly impacted their ability to adjust LPG prices downward. While global prices for fuel products, including LPG, might have fluctuated, the cost of importing LPG remains high due to the unfavorable exchange rate.
Kumi further emphasized that the LPG industry faces unique challenges compared to petrol and diesel. The cost structure for LPG, heavily influenced by import duties and taxes, coupled with exchange rate volatility, limits the flexibility to reduce prices in line with other petroleum products.
He noted that the LPG market is particularly sensitive to these external factors, making price adjustments more complex than it might appear.
While the public may expect price reductions, especially in light of lower prices for petrol and diesel, Kumi urged consumers to consider the broader economic context.
The stability in LPG pricing is a necessary measure to cushion the sector from potential future shocks caused by currency fluctuations or increased global LPG demand.
He concluded by stating that, should the cedi stabilize or appreciate, consumers may see more favorable LPG prices. However, for now, maintaining the current price levels is essential to safeguarding the sustainability of the industry and ensuring a consistent supply of LPG throughout the country.
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Story by Osei Akoto (Teacher Kojo) #Ahotoronline.com
