Ghana escapes sharp LPG price rise as earlier deal pays off – NPA

Ghana has avoided a significant increase in LPG prices despite a rise in international rates, according to the National Petroleum Authority (NPA). The authority explained that a monthly import arrangement has been shielding consumers from the price surge. Abass Tasunti, the NPA's Director of Economic Regulation and Planning, revealed that Ghana had secured its current LPG supply at a lower price before the global prices began to climb.

The country imports LPG through a tender program, with each cargo covering one month of supply and the import price fixed for that period. This arrangement means that changes in international prices do not immediately impact the cost of the already purchased cargo. Tasunti emphasized that this explains why local LPG prices have fallen even as international prices suggest a significant increase in the next pricing window.

However, the protection depends on the price secured for each monthly cargo. The same arrangement has also contributed to a previous LPG price increase when the new cargo came at a higher price upon replacing the previous month's supply. For the upcoming window, the earlier purchase continues to provide a cushion against a sharp price increase.

Tasunti also noted pressure on international diesel supplies due to disruptions involving Russia, such as attacks on refineries and export restrictions. While European countries' release of strategic reserves is helping address the short-term shortage, continued attacks on Russian refineries leave uncertainty over supplies. For Ghana's LPG consumers, the immediate relief comes from the lower price already secured under the monthly tender program.