Ghana National Gas Limited has proposed an increase in its tariff from US$1.10 to US$2.10 per million metric British thermal units (MMBtu), nearly doubling the current rate. The proposal forms part of ongoing utility tariff reviews by the Public Utilities Regulatory Commission (PURC).
The adjustment, representing a 91 percent hike, comes on the heels of similar requests from six other state-owned utilities, which are seeking increases ranging from 59 percent to more than 200 percent.
According to the company, the increment is crucial to sustaining operations, expanding infrastructure, and guaranteeing the long-term reliability of the natural gas transmission network.
Speaking at a stakeholder engagement on the tariff review, Sylvester Enumi Cudjoe, Manager of Commercial Operations at Ghana Gas, said the proposed cost-reflective tariff complies with PURC’s rate-setting guidelines. He added that it is designed to recover prudent capital investments while improving 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.
