The Chamber of Oil Marketing Companies (COMAC) has strongly urged the Ghanaian government to abolish all taxes on Liquefied Petroleum Gas (LPG). This call comes as the current tax burden makes LPG increasingly unaffordable for many Ghanaians.
These taxes account for a significant 16 to 18 percent of the retail price of LPG. This high cost is slowing down efforts to expand the use of clean cooking fuel across the country. Global market uncertainties are already putting upward pressure on prices, making the situation worse for consumers.
This development fits into Ghana's broader economic narrative of managing energy costs and promoting cleaner energy sources. The nation has been grappling with fluctuating fuel prices, which directly impact household budgets and business operations. Encouraging LPG use is a key part of Ghana's strategy to reduce deforestation and improve public health outcomes.
Gabriel Kumi, Board Chairman of COMAC, made this appeal during an interview with Joy Business. The interview took place on the sidelines of the Ghana International Petroleum Conference (GhIPCon) 2026 in Accra. Mr. Kumi described the current taxes on LPG as "nuisance taxes" that must be removed. He emphasized that removing these taxes would make the clean cooking fuel more accessible to households and businesses.
Experts project that removing these taxes could increase LPG consumption by 20 to 25 percent. This significant increase would not only benefit consumers but also support Ghana's environmental objectives. It would encourage more households to switch from traditional cooking fuels like charcoal and firewood. This transition is crucial for improving air quality and reducing the health risks associated with indoor pollution.
Mr. Kumi further stressed that expanding LPG usage would improve energy access for a larger segment of the population. It would also enhance public health by reducing reliance on less clean alternatives. These benefits contribute directly to the country's broader climate and sustainability goals. The government's decision on these taxes will significantly impact both consumer welfare and Ghana's energy transition efforts.
The call from COMAC highlights ongoing industry concerns about the downstream petroleum sector. Stakeholders continue to advocate for policy measures that protect consumers from rising global energy costs. The government's response to this appeal will be closely watched by consumers, businesses, and environmental advocates alike. It could set a precedent for how Ghana balances revenue generation with public welfare and environmental sustainability.
The potential for another increase in LPG prices due to escalating geopolitical tensions adds urgency to COMAC's request. Policymakers face a critical decision regarding the current tax regime. Their choice will affect millions of Ghanaians and the nation's progress towards cleaner energy. This situation underscores the delicate balance between fiscal policy and socio-economic development in Ghana.