West African governments must immediately eliminate all taxes on Liquefied Petroleum Gas to halt the environmental devastation caused by mass tree felling for charcoal production, Ghana’s Chamber of Oil Marketing Companies insisted at a regional energy conference in Lagos this week.
Gabriel Kumi, the chamber’s chairman, delivered the message during discussions focused on energy sustainability at the 19th OTL Africa Downstream Energy Week 2025, where industry leaders from across the region gathered to address pressing challenges in the petroleum sector. His comments reflect mounting frustration within the industry over taxation policies that marketers say have effectively sabotaged efforts to transition households away from traditional biomass fuels.
The taxation issue represents more than just pricing concerns for the regional oil marketing industry. Kumi explained that LPG was originally envisioned as a transitional fuel to reduce tree cutting for charcoal, but numerous government taxes have undermined market penetration and pushed low-income households back toward charcoal and firewood. Environmental groups have long warned that West Africa’s forests face some of the fastest depletion rates globally, with household cooking fuel demands driving much of the destruction.
Ghana’s experience illustrates the price sensitivity that shapes LPG adoption patterns across the region. According to Kumi, only about 30 percent of Ghana’s population, primarily middle-income earners, can currently afford LPG, leaving the majority of households dependent on charcoal and firewood. He characterized the various levies imposed on the commodity as obstacles that prevent the poorest households from accessing cleaner cooking alternatives.
The consumption data from Ghana reveals how dramatically taxation affects market growth. LPG usage stagnated between 2015 and 2020 following tax implementation, with growth below five percent during that period, while between 2020 and 2024 expansion remained under one percent annually. Only in 2025’s first half did growth recover to approximately five percent, demonstrating what industry officials describe as extreme sensitivity to pricing structures.
Nigeria’s relatively affordable pricing drew praise from the Ghanaian industry leader as a model for regional peers. Kumi noted that Nigeria’s pump price stands at roughly 80 cents per kilogram compared to Ghana’s 120 cents, a difference he said reflects directly in consumption patterns. The contrast underscores how policy choices around taxation and subsidies shape market outcomes across neighboring countries.
The chamber chairman’s recommendations extend beyond simple tax elimination to include targeted financial support for rural populations. Kumi stressed that across Africa, approximately 60 to 70 percent of people still depend on firewood and charcoal, representing the poorest households that cannot access LPG without bold government intervention. His advocacy reflects a decade-long campaign pushing for tax-free LPG throughout West Africa, though progress has remained elusive.
The urgency in Kumi’s messaging stemmed from concerns that policy discussions without practical implementation deliver no real-world impact. He warned that conferences and speeches about clean energy transition become meaningless if people cannot afford LPG at the pump, noting that West Africa’s forests deplete at alarming rates largely because households rely on firewood and charcoal for cooking.
The energy conference where Kumi delivered his appeal brought together operators, regulators, financiers and service providers examining how Africa’s downstream petroleum sector can adapt to rapid market evolution. The 19th edition of OTL Africa Downstream Energy Week ran from October 26 to 31, 2025, at Lagos Oriental Hotel, featuring ministerial panels and regulatory discussions spanning multiple West African nations.
Ghana’s current LPG pricing structure includes multiple government levies that marketers have consistently challenged. Industry data shows that taxes comprise approximately 23 percent of the retail price, compounded by currency depreciation pressures that further erode affordability. The combination creates what advocates describe as a barrier preventing widespread adoption among lower-income households who most need alternatives to biomass fuels.
Kumi has maintained a decade-long advocacy pushing for cheaper, affordable and tax-free LPG costs throughout Ghana and the West Africa subregion, establishing himself as a prominent voice on energy access issues within the downstream petroleum industry. His arguments emphasize that environmental protection goals and development objectives both require making clean cooking fuels financially accessible to households currently using charcoal and firewood.
The regional dimension of the taxation challenge means individual country actions alone won’t solve the broader environmental crisis. Charcoal production networks often cross national boundaries, while deforestation impacts extend beyond political borders. Industry leaders argue that coordinated West African approaches to LPG taxation would deliver better environmental and development outcomes than fragmented national policies.
The connection between LPG accessibility and forest conservation has gained increasing attention as climate change concerns intensify across Africa. Trees felled for charcoal production represent lost carbon sinks, while the charcoal burning process itself generates emissions. Transitioning households to LPG offers both immediate local air quality improvements and broader climate benefits, assuming pricing structures enable actual adoption.
Kumi concluded by emphasizing that making LPG affordable and accessible represents the only viable alternative to persistent forest destruction, warning that without decisive government action to remove taxes, desired LPG consumption growth will remain unattainable. His comments reflect mounting industry frustration over what marketers perceive as contradictory government policies that simultaneously promote clean energy while maintaining tax structures that prevent its adoption.
The challenge facing policymakers involves balancing revenue needs against environmental and development objectives. Governments across the region depend on petroleum product taxes as significant revenue sources, making wholesale elimination politically complex despite environmental arguments. Industry advocates acknowledge these fiscal pressures while insisting that forest preservation and household health justify the revenue sacrifices that tax removal would require.
Whether West African governments will heed the industry’s call for comprehensive tax elimination remains uncertain. Similar appeals over recent years have produced limited policy shifts, though growing environmental awareness and international climate commitments may create new momentum for reform. The outcome will likely shape not only regional energy access patterns but also the future of West Africa’s rapidly diminishing forest resources.
