Kerosene usage in Ghana has declined due to subsidy removal, LPG promotion, urbanization, and cleaner energy campaigns, with LPG emerging as a preferred alternative
Once upon a time in Ghana before modern LED bulbs and electricity became prevalent, kerosene was a common commodity in almost every household. In those days, kerosene was “king.” From fueling lanterns to give light to sparking fires for cooking household meals, the fuel was considered a necessity. The age-old “bobo” lantern will not come to life except in the presence of kerosene.
Beyond kerosene widely used as fuel, it was also known to have other less-known usage in the household. Kerosene, few will remember as a secret arsenal against bedbug infestation and other household pests which may not be known to many of the current generation.
Aside from the manifest and latent functions of the commodity, its economic and business importance during those times cannot be glossed over. It was not uncommon situation to find many people in a neighborhood who depended on the sale of kerosene as a source of income. It provided many with employment as distributors, wholesalers, and retailers. Many middle-aged professionals have confessed that they funded their education or apprentice training through the sale of kerosene.
Kerosene Today
Today, with our smartphones, electricity, and power plants lighting up rooms and powering businesses coupled with the introduction of stoves replacing coal pots, kerosene appears to become a relic of the past.
Brand Focus Africa is gathering that despite the continuous importation of the fuel, its consumption has seen a very dramatic and drastic reduction. The 2023 Ghana Petroleum Industry Report by the Chamber of Bulk Oil Distributors, CBOD, reveals that many factors have led to a drastic reduction in the consumption of kerosene.
Within a period of about 10 years, Ghana’s consumption of kerosene has seen a dramatic reduction of over 93%. From 46,000MT in 2012, the country now consumes around 3000MT as of 2023.
The Trend
The report reveals that in a period of a little over a decade, kerosene consumption in Ghana has been experiencing a clear and sustained reduction.
Between 2012 and 2013, there was a significant drop in kerosene usage from 46,000MT in 2012 to 28,000MT in 2013 marking a major shift. The consumption further fell to around 7000MT and 8000MT by 2016 indicating a continued trend of reduced usage.
Between 2016 and 2023, the trend became relatively stable, with consumption fluctuating between 3,000 and 6,000 MT annually. The final figure in 2023 is 3,000 MT, reflecting a continued but slower decline.
“The consumption of kerosene declined by 35% to 2,582MT in 2023 from 2022, reflecting the downward trend witnessed over the years. The trend of the consumption of kerosene over the last 10 years (2012-2023) shows a peak demand in 2012 at 45,632MT followed by a consistent fall in demand to 2,582MT even though there some years where consumption witnessed an upward movement,” parts of the industry report read.
The Cause
Brand Focus Africa has identified a number of factors that have caused the significant drop in the usage of kerosene over the period. A major factor is the introduction of the Fuel Marking Programme by the National Petroleum Authority (NPA) in 2013 which saw a significant reduction of kerosene as an adulterant for gasoil. In addition, the same year witnessed the removal of the kerosene subsidy by the government making the product more expensive.
Over the years, the heightened promotion of Liquefied Petroleum Gas (LPG) as an alternative to other fuel sources such as charcoal, and firewood by the government has significantly caused less and less usage of kerosene. Urbanization of the Ghanaian population has also contributed to the switch from kerosene to LPG which is considered a cleaner source of fuel.
Given the trend of drop in the use of the fuel that in times past lighted our homes, cooked our meals, and treated infestation, it is possible that kerosene might go extinct or its usage might become negligible.
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Moreover, in an era of massive worldwide campaigns for a shift to cleaner forms of energy, the switch from kerosene is expected. This is because of the issues associated with its usage such as air pollution, health risks, and the climate impact. Although kerosene is at risk of extinction, it has been replaced by a more efficient and cleaner fuel in the form of LPG which its’ usage is a discussion for another time.
