Ghana National Gas Limited is proposing to raise its tariff from US$1.10 to US$2.10 per million metric British thermal units (MMBtu). This increase is part of a larger movement of utility tariff hikes currently under review by the Public Utilities Regulatory Commission (PURC). The proposed increase represents a 91 percent jump and follows similar requests from six other state-owned utilities, which are seeking increases ranging from 59 percent to over 200 percent.
The company states that this proposed hike is essential for sustaining operations, expanding infrastructure, and ensuring the long-term reliability of the natural gas transmission system. At a stakeholder forum regarding the tariff review, Sylvester Enumi Cudjoe, the Manager of Commercial Operations at Ghana Gas, explained that the proposed cost-reflective tariff aligns with PURC’s rate-setting guidelines. It aims to recover reasonable capital investments while ensuring operational efficiency.
“We have proposed to the PURC that our tariff should move from 1.10 as we have today to about 2.10. The basis is the things that I have already elucidated. One,if you want to be a prudent operator, you have to invest in certain key instrumentations,” he explained. According to the proposal, the adjustment covers capitalised expenses, approved short-term investments, and revenues from natural gas liquids, which will offset processing costs.
Ghana Gas noted that since the last major review in 2022, it has undertaken critical expansions in gathering and transmission infrastructure to meet rising demand and support industrial growth, much of which has not yet been fully accounted for in the regulated asset base. The company argues that the revised tariff strikes a balance between investor and public interest while positioning Ghana Gas to play a central role in driving industrialisation, enhancing energy security, and supporting the country’s transition to cleaner fuels.
All seven tariff proposals from the utilities remain subject to approval by the Public Utilities Regulatory Commission (PURC) after extensive stakeholder consultations.
Source: Emmanuel Oppong
