A recent regression analysis by the Institute for Energy Security (IES) has unveiled a troubling pattern of decreasing Liquefied Petroleum Gas (LPG) usage within the country's downstream petroleum industry.

Covering the period from January 2020 to December 2023, with an extension into April 2024, the study sheds light on various hurdles confronting both consumers and policymakers.

According to the IES, there was a notable decline in LPG consumption, around 4.47 percent, from January 2020 to December 2023.

This marks a sharp contrast to the previous four-year period, which experienced a growth of approximately 6.43 percent.

Monthly consumption figures displayed significant fluctuations, with November 2020 registering the peak at 35,298,600 kilograms, while April 2023 saw the lowest consumption at 21,146,427 kilograms.

The IES analysis indicates that escalating prices played a significant role in the overall 4.47 percent consumption decline from January 2020 to December 2023.

The study revealed a substantial hike in the ex-pump price per kilogram of LPG, more than doubling from Gh¢5.81 to Gh¢12.57 between January 2020 and December 2023.

This price surge was particularly notable in the initial four months of 2024, witnessing one of the sharpest increases, at 30 percent, since October 2022, soaring to Gh¢16.11 per kilogram in April.

With the study's Coefficient of Determination (R² = 0.1647), it's evident that approximately 16.47 percent of the variability in LPG consumption can be explained by pricing fluctuations, suggesting the presence of other influential factors not accounted for in the model.

“External factors that explain the variation in LPG consumption data in Ghana includes reduced purchasing power of consumers due to worsened economic condition, Cedi’s depreciation, a ban on new LPG outlets which could impact negatively on accessibility, and introduction of government policies,” the study captured.