Ghana’s dream to industrialize and develop beyond aid is jeopardized by the high prices charged on natural gas produced from its oil and gas fields, an expert has said.
Theo Acheampong, an energy economist and political risk analyst in the natural resources sector, told Xinhua on Monday that the high charge for gas made power generation in Ghana uncompetitive.
He said that Ghana’s high cost of power was unattractive to investors in its industrial sector.
According to him, this high cost of power generation was due to the high tariff on natural gas used in generating power.
“So if we want to be competitive, if we want to support industrial growth, then ultimately it means that the price of power that people pay has to come down,” he urged.
The price for natural gas, he argued, was still relatively high in Ghana due to rent and other charges slapped by government on the actual cost of gas production.
Acheampong urged policy makers to understand that if the price for gas was lower, then electricity tariffs would also go down, which would ultimately engender industrialization and job creation with higher revenue coming to government. Enditem