Ghana: COMAC Urges West Africa To Scrap Taxes On LPG, Cites Rising Deforestation

Ghana’s Chamber of Oil Marketing Companies (COMAC) has called on West African governments to abolish taxes on Liquefied Petroleum Gas (LPG) to boost clean energy adoption and curb widespread deforestation linked to charcoal use.

The Chamber of Oil Marketing Companies (COMAC) in the Republic of Ghana has called on West African nations to remove all taxes on Liquefied Petroleum Gas (LPG) to boost adoption and help prevent the continuous felling of trees for charcoal production.

COMAC Chairman, Mr. Gabriel Kumi, made the call during a high-level panel discussion on the topic “Energy Optimisation, Transition & Sustainability (Gas & Renewables)” at the 19th OTL Africa Downstream Energy Week 2025 in Lagos, Nigeria.

He explained that LPG was originally intended as a transitional solution to reduce the cutting of trees for charcoal production. However, he lamented that several countries have introduced numerous taxes on the commodity, which has hindered market penetration and forced low-income earners to revert to charcoal for cooking.

Citing Ghana as an example, Mr. Kumi said what he described as “nuisance taxes” imposed on LPG have made it unaffordable for the majority of citizens. According to him, only about 30 percent of the population — primarily middle-income earners — can afford LPG, leaving most low-income households dependent on charcoal and firewood.

“In Ghana, it is mainly middle-income couples who can afford LPG, and they make up about 30% of the population. The majority of our people — the 60 to 70% who need affordable energy — are unfortunately being priced out of LPG,” he stated.

Mr. Kumi noted that LPG consumption in Ghana stagnated between 2015 and 2020 following the introduction of taxes on the product.

“We were growing at less than 5% during that period. Between 2020 and 2024, growth was below 1%. It’s only this year (2025), in the first half, that we’ve seen about 5% growth compared to the same period last year. This shows how sensitive LPG consumption is to pricing,” he said.

He, however, commended Nigeria for keeping LPG prices relatively affordable.

“Nigeria is doing better than Ghana in terms of pricing. The pump price in Nigeria is about 80 cents per kilogram, while Ghana’s is around 120 cents — a significant difference that reflects in consumption trends,” he added.

Mr. Kumi stressed that it was time for West African countries — and Africa as a whole — to remove all taxes on LPG and even introduce targeted subsidies for rural populations to encourage adoption.

“Across Africa, about 60 to 70% of people still rely on firewood and charcoal. These are the poorest households who cannot afford LPG. Unless we take bold steps to make LPG affordable, we will not achieve meaningful progress,” he warned.

He cautioned that without practical action, policy discussions and conferences on clean energy transition would remain ineffective.

“We can hold all the conferences and make all the speeches, but if people cannot afford LPG at the pump, it’s all in vain. West Africa’s forests are depleting at one of the fastest rates in the world — largely because people rely on firewood and charcoal for cooking,” he said.

Mr. Kumi concluded by emphasizing that the only viable alternative to stop the persistent destruction of forests is to make LPG affordable and accessible.

“The cost of LPG in West Africa is simply too high. Unless governments act decisively to remove these taxes, the growth we desire in LPG consumption will remain out of reach,” he said.