Ghana Seeks Increased Investment to Strengthen LPG Market and Regional Fuel Security

A core pillar of the NPA’s strategy is expanding the adoption of LPG across Ghana, a cleaner and more affordable alternative to traditional cooking fuels.

Ghana’s National Petroleum Authority (NPA) is leading a strategic push to transform the country’s downstream petroleum sector with the goal of increasing liquefied petroleum gas (LPG) consumption to 50% of the market share by 2030. In a bid to drive private-led investments, enhance fuel security, and fortify distribution networks across the West African region, the NPA is leveraging strengthened policies, innovative technologies, and a growing commitment to sustainability.

As part of the ongoing transformation, the NPA has identified key initiatives to promote growth in Ghana's downstream value chain, which encompasses crude importation, refining, and the sale, marketing, and distribution of petroleum products. The authority's focus is on optimizing efficiency and sustainability across all sectors, thereby making the downstream sector a crucial contributor to Ghana’s economic growth.

Strengthening the LPG Market

A core pillar of the NPA’s strategy is expanding the adoption of LPG across Ghana, a cleaner and more affordable alternative to traditional cooking fuels. In recent years, the country has experienced significant growth in LPG consumption, with a 7.25% increase in 2024, reaching 340 million liters. This growth was largely driven by the Cylinder Recirculation Model, an innovative distribution system that allows residential and commercial users to exchange LPG cylinders, reducing the need for refilling. This model was introduced in 2023, and it is already showing promising results in both urban and rural areas.

The surge in LPG usage, from 28.9% in 2010 to 60% in 2023, is a testament to the success of this program. Furthermore, Ghana’s LPG consumption has grown from 18.2% in 2010 to 44.1% by 2023, reinforcing the shift toward cleaner energy. Major investments, including the Puma Energy-owned $6 million LPG bottling plant in Tema, with a capacity to produce 1,200 cylinders per hour, are also boosting the country’s LPG distribution infrastructure. A second plant, being developed by the Ghana Cylinder Manufacturing Company, will have the capacity to handle 150 million cubic feet of LPG per day, further enhancing the sector’s capacity.

Boosting Downstream Efficiency Through Technology

The NPA is also focused on integrating innovative technologies to increase efficiency and profitability across the entire petroleum value chain. One of the most significant advancements is the implementation of a transparent, automatic price adjustment formula. This replaces the previous annual regulated pricing model, ensuring that the prices of petroleum products remain responsive to market fluctuations, offering more flexibility and competitiveness.

In addition to the pricing reforms, the NPA has introduced a zero-tolerance policy for toxic fuels. This initiative is coupled with a commitment to increasing the use of low-sulfur fuels, improving air quality and minimizing harmful emissions. Furthermore, technology-based mechanisms, such as the petroleum marking scheme, bulk road vehicle tracking project, electronic cargo tracking system, and enterprise relational database management software, have been introduced to enhance monitoring capabilities and ensure the optimal quality and quantity of petroleum products in the country.

Ghana's Role in Regional Fuel Security

Ghana is not only focused on its domestic energy security but is also making significant strides in strengthening regional fuel supply chains. In 2024, the NPA signed an agreement with Senegal and The Gambia to increase petroleum exports across the West African region. The country already exports petroleum products to neighboring countries, including Mali, Niger, Burkina Faso, Ivory Coast, and Togo. In total, Ghana exported 385,154,100 liters of petroleum products to these regional markets in 2024.

With more than 5,000 service providers registered in Ghana, the country delivers over four million metric tons of petroleum products annually. The NPA’s efforts to strengthen regional exports position Ghana as a key player in enhancing fuel security and economic cooperation across West Africa.

Key Developments and Investments

The NPA is actively pursuing new investment opportunities, with a special emphasis on the development of the Integrated Petroleum Hub (IPH), which is expected to position Ghana as a leading player in the global petroleum market. The NPA will outline its ongoing efforts to attract private sector investments in downstream projects during the upcoming Invest in African Energies: Accra Investor Briefing, taking place on April 14, 2025, at the Kempinski Hotel. At this event, Godwin Kudzo Tameklo, the CEO of the NPA, is expected to provide an update on the country’s progress and share details on the expansion of LPG distribution and broader infrastructure advancements.

Through targeted policies, robust infrastructure developments, and a focus on technological innovation, Ghana is making significant strides toward securing its energy future. The NPA’s forward-looking approach aims to position the country as a major contributor to West Africa’s long-term fuel security, enabling Ghana to play a pivotal role in ensuring the availability of affordable and clean energy across the region.

A Vision for Sustainable Growth

As Ghana’s downstream sector continues to evolve, the NPA’s vision remains clear: to create a sustainable, efficient, and profitable petroleum market that supports both domestic and regional energy needs. By attracting investment, advancing technology, and implementing policies that promote environmental sustainability, Ghana is positioning itself as a leader in Africa’s energy sector, ensuring that future generations will benefit from a more secure and cleaner energy landscape.

Ghana’s commitment to low-cost, reliable fuels and its ambitious plans to increase LPG usage serve as a model for other countries in Africa, demonstrating the transformative power of policy-driven investment and innovation in the energy sector. With increased investment and continued technological advancements, Ghana stands to play a critical role in enhancing fuel security across West Africa, fostering economic growth, and paving the way for a more sustainable future.