Determinants of Liquefied Petroleum Gas (LPG) Use Among Households in Northern Ghana

Abstract

This paper examines the determinants of Liquefied Petroleum Gas (LPG) use in Northern Ghana using a cross-sectional data obtained from 196 households. Data were analyzed for descriptive statistics as well as a binary probit regression for identification of factors that influence households’ decision in the usage of LPG in northern Ghana. The results show that LPG use in northern Ghana by households is very low (37.8%). The findings of the paper also show that LPG use in northern Ghana is influenced by education, household size, household income, cost of LPG, residence of household, fear of LPG explosion and access to LPG. It can therefore be concluded that in order to promote the use of LPG in northern Ghana, efforts must be on public education to address perception of high risk of LPG use for cooking in households by Energy Commission (EC), National Petroleum Commission (NPA), Non-Governmental Organisations (NGOs), National Commission for Civic Education (NCCE) and Community Based Organisations (CBOs). There is also the need for government to create and sustain an enabling environment for the public and private sectors investors to establish large LPG bottle refilling plants, that are able to test, certify and refill LPG cylinders for the market and also offer incentives to encourage private LPG retail/service companies to build up distribution network and retail outlets. It is also recommended that, government should re-introduce the door to door marketing and distribution of filled LPG cylinders and also redirect the current subsidy away from LPG fuel to domestic LPG equipment/appliances to make it possible to retarget the subsidy at domestic users. There is the need to intensify poverty reduction strategies by government to reduce income poverty so as to increase the usage of LPG in addition to improving access and affordability of clean fuels especially LPG to rural households. Finally, Policies on promoting universal education should be bolstered as they have varied implications on the decision to use LPG.

Keywords: LPG, binary probit regression and northern Ghana