Petroleum Economist and Political Risk Analyst, Dr. Theo Acheampong, has predicted a possible hike in prices of Liquefied Petroleum Gas (LPG) by the close of 2021.
The economist says that LPG price is likely to witness about 30 percent increase attributing this possible hike to the numerous government taxes on the product which have recently witnessed an increase.
Dr. Theo Acheampong, who was speaking on Joy News’ Newsfile on Saturday indicated that “my biggest concern has to do with LPG. If we are not careful, LPG prices could go up from the current ₵7.8 to ₵10.00 per kilo by the end of the year. There is almost a 20 percent tax that the government imposes on that product.”
He therefore suggested that government’s tax on the product is reduced. He further warned that if urgent steps are not taken to stabilize the cost of LPG, it will have serious repercussions on the environment.
According to him, many Ghanaians are likely to resort to other forms of energy that are not environmentally-friendly if LPG becomes expensive.
“We can actually halve that 20 percent tax and remove between five and ten percent and that will smoothen the consumption pattern. Importantly, it is good for the environment,” he stated.
He added that “research shows that the moment the price of LPG goes up, households engage in fuel-stacking. You may have charcoal and other biomass or fuel forms and you decide not to buy LPG because it is expensive. That is not good for the environment and it also deepens energy poverty in the country,” he said.
The price of the commodity currently stands at ₵7.8 per kilo to consumers but Dr Acheampong says the cost could hit ₵10.00 by December.