Ghana Gas Requests 91% Tariff Hike to Sustain and Expand Operations
Ghana National Gas Company has submitted a proposal to the Public Utilities Regulatory Commission (PURC) to raise its tariff from US$1.10 to US$2.10 per million metric British thermal units (MMBtu). The adjustment, representing a 91 percent increase, comes as part of a broader set of tariff review applications filed by seven state-owned utilities, some seeking hikes of between 59 percent and over 200 percent.
According to Ghana Gas, the increase is necessary to secure its financial sustainability, fund ongoing infrastructure expansion, and guarantee the reliability of the country’s natural gas transmission system.
At a stakeholder engagement session, the company’s Manager of Commercial Operations, Sylvester Enumi Cudjoe, explained that the proposed “cost-reflective tariff” aligns with PURC’s rate-setting framework. He noted that the increment is designed to recover prudent capital investments while maintaining efficiency.
“We have proposed to the PURC that our tariff should move from 1.10 as we have today to about 2.10,” Cudjoe said. “If you want to be a prudent operator, you must invest in certain key instrumentations and infrastructure.”
The proposed revision, he added, accounts for capitalised expenses, approved short-term investments, and revenues from natural gas liquids, which help offset processing costs.
Ghana Gas highlighted that since the last major tariff review in 2022, it has implemented critical expansions in gas gathering and transmission infrastructure to meet growing demand and support industrialisation. However, much of this investment has yet to be fully reflected in the regulated asset base.
The company maintains that the new tariff framework balances investor expectations with public interest, while strengthening Ghana Gas’ role in promoting industrial growth, improving energy security, and advancing the shift to cleaner energy sources.
The PURC is currently reviewing all seven tariff proposals, which will be subject to further consultations with stakeholders before any approvals are granted.
