Accra, Ghana – October 9, 2023
The Liquefied Petroleum Gas (LPG) Marketers Association of Ghana is warning of a potential gas shortage beginning next week, attributing the crisis to current LPG reserves and new import regulations introduced by the National Petroleum Authority (NPA).
Vice President of the association, Gabriel Kumi, spoke to Joy Business, revealing that the existing stock of LPG in the country is insufficient to last beyond a week. “There is a lot of shortage in the system. This 10,000 metric tons that has come in will be exhausted by the end of the week. If measures are not taken to bring in another vessel of gas by next week, we shall be in a very serious shortage situation,” he cautioned.
Kumi highlighted that price fluctuations on the international market are also contributing to the anticipated price hikes for consumers. He explained that the Atuabo Gas Plant, which supplies approximately 45 to 50 percent of Ghana’s national LPG needs, has been underperforming. “For the past month, we have not been receiving supplies from Atuabo, forcing LPG marketers to rely solely on foreign imports,” he noted.
To avert the looming shortage, Kumi called on the NPA to expedite the import process by instructing Bulk Distribution Companies (BDCs) to bring in LPG as quickly as possible. “We believe that the only way to avert the shortage is for the NPA to tell the BDCs to bring in the products as quickly as possible so that we can serve the general public,” he urged.
The LPG supply situation has been precarious in recent weeks. On September 26, parts of the country experienced significant shortages, prompting warnings from the association that the situation could deteriorate further if supplies did not improve. Kumi reported that “about 60 to 70 percent of us have run out of LPG,” putting additional strain on the few stations that still had gas available.
In response to the recent supply challenges, the Tema Oil Refinery (TOR) has assured stakeholders that the issues have been addressed and that supplies are expected to normalize soon. A TOR source stated, “We expect supplies to improve very soon for the situation to normalize.”
As the situation develops, the LPG Marketers Association continues to advocate for swift action to prevent further shortages and ensure that consumers have access to necessary gas supplies.