Ghana Gas seeks 91% tariff increase to expand, sustain operations

 

Ghana National Gas Limited is proposing to increase its tariff from US$1.10 to US$2.10 per million metric British thermal units (MMBtu), as part of a broader wave of utility tariff hikes under review by the Public Utilities Regulatory Commission (PURC).

The move represents a 91 percent jump and follows similar proposals by six other state-owned utilities seeking increases between 59 percent and over 200 percent.

The company says the proposed increment is necessary to sustain operations, expand infrastructure, and ensure the long-term reliability of the natural gas transmission system.

Speaking at a stakeholder forum on the tariff review, Manager of Commercial Operations at Ghana Gas, Sylvester Enumi Cudjoe, explained that the proposed cost-reflective tariff is aligned with PURC’s rate-setting guidelines and is aimed at recovering prudent 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 are 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.