Why Cooking Gas Prices Are Falling Despite Rising Global Costs – NPA Explains

Ghanaian households using liquefied petroleum gas (LPG) are benefiting from a monthly import arrangement that helps protect consumers from sudden increases in international prices, the National Petroleum Authority (NPA) has explained.

Abass Tasunti, Director of Economic Regulation and Planning at the NPA, says the country’s LPG import tender programme allows the purchase price of each consignment to remain fixed throughout a one-month supply period.

Speaking on Joy News’ PM Express Business Edition, Mr Tasunti explained that each imported cargo typically covers the country’s LPG requirements for approximately one month. Once the purchase price is agreed, it remains locked in during that period.

The arrangement has helped explain why LPG prices in Ghana have declined despite significant increases in international market prices ahead of the next pricing window.

According to Mr Tasunti, Ghana had already secured its current supply at a comparatively lower price before the latest international price increases.

He said this allowed consumers to benefit from the earlier import arrangement rather than immediately absorbing the higher costs being experienced on the global market.

Relief could be temporary

However, the NPA official cautioned that the arrangement does not permanently protect consumers from international price movements.

He explained that the same system had previously contributed to a sharp increase in local LPG prices when a new consignment was purchased at a higher cost after the previous supply arrangement expired.

This means that when the current supply period ends, the cost of the next imported cargo could influence prices in the subsequent pricing window.

The monthly arrangement therefore provides temporary protection depending on the price secured for each consignment.

Why diesel prices face different pressures

Mr Tasunti also addressed developments in the diesel market, explaining that supply disruptions affecting major international sources have contributed to pressure on availability and prices.

He pointed to the Russia-Ukraine conflict and attacks on Russian refineries as factors affecting global diesel supplies.

He explained that when major supply sources experience disruptions, reduced availability can create supply-and-demand pressures that influence market prices.

For LPG consumers, the immediate outlook remains linked to the cost of the imported cargo already secured, while future pricing will depend on the terms of subsequent import arrangements.

The NPA’s explanation highlights how the timing and cost of fuel imports can influence prices at the domestic level, even when international market conditions are moving in the opposite direction.

Source: National Petroleum Authority’s Director of Economic Regulation and Planning, Abass Tasunti, speaking on Joy News’ PM Express Business Edition.