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LPG consumption surges 65pct

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ZIMBABWE’S liquefied petroleum gas (LPG) consumption soared by 65 percent to 6,52 million kilogrammes (kg) in May 2024 compared to the same month in 2023, according to the latest data from the country’s energy regulator.

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This surge in LPG usage, driven primarily by industrial and residential demand, suggests that ongoing power cuts are significantly hindering economic activity.
For the first five months of 2024, the country consumed 26.64 million kg of LPG, a five percent increase from the 25,4 million kg consumed in the same period last year.
Average monthly LPG consumption during this period reached 5,32 million kg, compared to 5,08 million kg in the previous year.
LPG consumption in Zimbabwe saw a substantial increase of 10,36 percent in 2023, reaching 66,1 million kg, highlighting the nation’s growing reliance on alternative energy sources in the face of worsening power outages.
Peak consumption occurred in August 2023, with usage spiking 73 percent year-on-year to 9,55 million kilogrammes.
Zimbabwe’s energy regulator (Zera) had initially underestimated the impact of the power crisis, projecting a more modest five percent annual increase in LPG demand.
The current energy shortfall follows a period of relative stability, which was made possible by the expansion of the Hwange Thermal Power Station.
The government’s efforts to promote LPG use since 2013 have led to a significant increase in its adoption. However, experts caution that relying on imports, which require an estimated US$3 million in foreign currency monthly, is not a sustainable solution.
Zera acknowledges the challenges posed by unlicensed LPG dealers, raising concerns about market safety and efficiency. Experts suggest that the country should focus on promoting local production of green fuel to reduce its dependence on imports.
newsdesk@fingaz.co.zw

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