The outbreak of the novel Coronavirus, which has affected world economies including Ghana, has not spared the Liquefied Petroleum Gas (LPG) sector of the Ghanaian economy.
In Ghana, LPG is used for cooking as well as powering of vehicles.
However, the consumption of the commodity has declined in the West African nation over the last three months, and this has been linked to the outbreak of the Coronavirus.
Ghana has recorded over 5,735 cases of Coronavirus with 1,754 recoveries and 29 deaths.
The situation has made the government place a ban on social gathering and shut down hotels, bars and restaurants.
Speaking to energynewsafrica.com in an interview, Vice Chairman of LPG Marketing Association of Ghana, Gabriel Kumi said LPG consumption has declined to between 15 percent and 20 percent.
“The LPG consumption has declined since the inception of COVID-19. If you look at the consumption, even though domestic consumption has seen 10 percent increment if you look at the industrial consumption, the chopbars, restaurants and hotels are no longer operating so, obviously, there has been a dip in domestic consumption of LPG. About 40 to 45 percent of LPG is being consumed by taxis and commercial vehicles…But during the lockdown, there was slow activity so it also slowed consumption.
“In all, if you look at the figures, LPG consumption has dropped between 15 and 20 percent,” Mr Kumi posited.
Mr Kumi revealed that the current situation has compelled LPG retailers across the country to adopt cost cutting measures in a bid to continue to stay in business and become competitive.
The sector employers about 6,000 people but Mr Kumi noted that the figure has been slashed by 10 percent.
Among other cost cutting measures being adopted by the employers in the LPG sector, Mr Kumi explained include slashing of salaries of staff by 50 percent.
Making an argument about the cost of LPG consumption in relation to the impact of the Coronavirus, Mr Kumi, said: “This is one of the reasons why we kicked strongly against the new LPG margin by our regulator, the NPA. We believe the idea is being made for the Ghanaians to pay too much for LPG. We believe the product is chocked by consistent and continuous introduction of taxes.”
He argued that the country stands to gain more revenue on it when it cuts taxes on LPG to allow more consumption than imposing more taxes on the product.
“This is why we have called for a total removal of taxes from LPG to make the product more affordable to the ordinary Ghanaian so that it can increase consumption to save our environment and save mother Ghana from environmental destruction,” he explained.
The LPG Marketing Association vice Chair, further noted that globally, the product’s use is on the rise, but in Ghana, its use is on the decline at worse, it is stagnated, because of the taxes we have imposed on its use.
He advised parents to place their cylinders outside their kitchen to save children who are at home because of school closures to prevent gas accidents in their homes.
Source: www.energynewsafrica.com
