Analysis of Liquefied Petroleum Gas (LPG) Shortage in Ghana: A Case of the Ashanti Region

Abstract

Liquefied Petroleum Gas (LPG) is increasingly becoming the preferred choice of fuel in the world. The increase in patronage could be attributed to its affordability, efficiency and environmental friendliness. Like other energy sources, there are challenges that impede the smooth supply of LPG resulting in shortage. Several factors are involved which ultimately affects the efficiency of the entire Supply Chain system. The perennial LPG shortage in Ghana is an uncomfortable experience that needs urgent attention. Therefore, the study seeks among others to investigate the magnitude of noted disruptions that contribute to the shortage of LPG and the extent to which the LPG usage categories influence the length and frequency of shortage. A survey methodology was deployed for a total of 35 LPG retailers and 120 consumers in the Ashanti Region of Ghana. Results of the study indicated that the Technical and Transportation disruption was ranked by retailers and consumers as major factors that disrupt the supply of LPG. Analysis carried out revealed that the frequency of LPG shortages experienced by consumers depends on the categories of usage, whilst the consumers' experiences of the duration for LPG shortage are rather independent on the categories of usage.