The board of Ghana National Gas Limited has proposed that its tariff be raised by 91%, from US$1.10 to US$2.10 per million metric British thermal units (MMBtu).
The gas processing company maintains that the pending application before the Public Utilities Regulatory Commission (PURC) is in preparation to expand and sustain technical operations.
The company said the proposed rise is necessary to sustain operations, build infrastructure and provide long-term reliability of the natural gas transportation network.
Presenting at a stakeholder forum on the tariff review, Ghana Gas Manager of Commercial Operations Sylvester Enumi Cudjoe said the proposed cost-reflective tariff aligns with PURC's rate-setting principles and aims to recover prudent investment in capital and continue operational efficiency.
"We've made a proposal to the PURC that our tariff must change from 1.10 as we are now to about 2.10. The reason is the things I've already explained. One, if you want to be a shrewd operator, you must invest in some main instrumentations," he said.
Under the proposal, the upgrade consists of capitalized costs, approved short-term investments and natural gas liquids revenues, which will help fund processing costs.
Mr Cudjoe further stated that since the previous substantial review in 2022, the company has undertaken the significant expansions of gathering and transmission facilities to meet rising demand and stimulate industrial development, much of which is not yet fully captured in the regulated asset base.
Ghana Gas argues that the new tariff is a compromise between investor and public interests and positions the company to take a central leadership role in industrialization, enhancing energy security and facilitating the country's transition to cleaner fuels.
The 91% tariff request lags behind similar applications by six other state-owned utilities seeking rate increases from 59% to over 200%.
All seven tariff requests await PURC approval after intensive stakeholder consultation.
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