Accra, Feb 13, GNA – Ghana’s forest risks further depletion with the prices of charcoal and firewood increasing in Accra, a lower-middle-income earning region, amid reduction in consumption of Liquefied Petroleum Gas (LPG).
The Ghana Statistical Service (GSS) in its latest Consumer Price Index (CPI) observed that the solid fuel (charcoal and firewood) component of Housing, Water, Electricity, Gas and other Fuels of Non-Food inflation recorded a figure in excess of 47 percent.
Experts, from the Ghana Statistical Service (GSS), Industry, and Academia, in an interview with the Ghana News Agency, attributed the price hike in charcoal and firewood to both demand and supply factors.
They said demand in the commodity was far outstripping supply, transport related cost in carting the commodity from the backwoods to Accra, and reduction in LPG consumption were the major factors.
The Head of Price Statistics at GSS, Mr John Agyaho, said though the Service had not done a study into the causes yet, it could “theoretically suggest that there is increase in demand [for charcoal and firewood] more than the supply can meet. So, people are taking advantage of it to increase the prices.”
He added that: “It could equally be that transport cost has increased…it could also be that LPG is expensive.”
Mr Ralph Dedi, Vice President of the Ghana LPG Retailers Association, said: “Consumers are not able to fill their cylinders. When they come, they buy GH₵10 or GH₵20 instead of filling the cylinder, which is now sold for an average of GH₵120, far beyond the average man’s pocket.”
He urged the government to consider its recommendations made through the National Petroleum Authority (NPA) “for the taxes that are put on LPG to be looked at.”
The Forestry Commission had said, about 80 percent of Ghana’s forest cover has been depleted due to practices, including harvesting of trees, wildfire, illegal mining (galamsey), agriculture, settlements and other human activities.
Data from the Commission indicates that the country’s 8,200,000 hectares of forest cover in the1900s has reduced to 1,600,000 hectares.
Commenting on this, an Energy Economist, Dr Philip Kofi Adom, warned that the country’s forest stood the risk of further depletion if measures were not taken to address the issue immediately.
He said the price of LPG was becoming increasingly high and making people resort to the use of other cheaper sources of fuel, particularly charcoal and firewood.
Dr Adom noted that consequently, there would be more demand for wood products, which would lead to the cutting down of trees, hence, depletion of forest.
He said: “The demand for these solid fuels is increasing, prices are also going up and that is very worrying because that means that demands for our wood product is going to increase, and our forest will be at risk.”
He added that: “This will have serious environmental implication and even on our economic sustainability,” and asked government to ensure that LPG was affordable.
Dr Adom said pricing alone would not solve the problem and called for education on harmful use of solid fuels.
“Nowadays with the advancement of technology, these fuels can still be used in a more efficient way so education should be targeting these areas.”
Prof Anthony Amoah, Dean of the School of Sustainable Development, University of Environment and Sustainable Development, indicated that the price hikes in solid fuel could serve as an incentive for people to engage in illegal activities.
“Once we have a lot of people cutting down trees, the impact of climate change and global warming on our economy and on our individual lives would be inevitable.”
On the way forward, he urged the government to properly utilise the country’s energy resources to boost gas production, noting that more production of LPG would contribute immensely to salvaging the situation.
He said: “We should focus on building the needed infrastructure so that we can produce more and increase our supply base, and if we’re able to do this, no matter the taxes they put on it, supply will force the prices to fall.”
He added: “The forest guards must be on the watch, and this is the time to sensitise the people regarding the consequences of illegal activities, and let them know that if you indiscriminately cut down trees without permit, the law is going to take its own course.
GNA