The Africa Sustainable Energy Centre (ASEC) expresses profound disappointment in the stakeholders on the Management of Energy Sector Levies, following its failure to scrap the controversial GHC 1 per litre fuel levy, particularly the Chamber of Oil Marketing Companies (COMAC) for not representing the interest of the consumers.
After weeks of public backlash, consultations, and engagement, the government’s decision to merely postpone the implementation of the levy is unacceptable and out of touch with the needs of the Ghanaian people.
Postponing a flawed policy does not make it right. The levy is not reformed, simply delayed. That’s not progress.
Postponement Is Not a Solution
COMAC’s action in welcoming to delay, rather than eliminating, the fuel levy reveals a disturbing lack of urgency in addressing the real challenges within the energy sector. This decision does not alleviate public concern; it prolongs it. What consumers demanded was the total removal of the GHC 1 fuel levy, not a pause button. Ghana cannot afford to prolong policies that delay pain rather than prevent it.
The reality is, fuel prices impact every sector of the Ghanaian economy — from transport and food to manufacturing and small business operations. At a time when more than 40% of the pump price already consists of taxes, an additional levy risks driving inflation, increasing hardship, and reversing recent macroeconomic gains, particularly the stabilisation of the cedi.
The Core Problem Remains Untouched
ASEC maintains that the root of Ghana’s energy crisis lies in inefficiency and poor governance, particularly within the Electricity Company of Ghana (ECG). Years of outdated infrastructure, poor revenue collection and operational mismanagement continue to drain public resources. It is disheartening that, after extensive engagement, the Government failed to put consumers at the heart of the decision-making process.
Rather than introducing new taxes, the government should be focused on: • Fixing leakages and illegal connections within the ECG
- Implementing smart metering and digital billing reforms
- Enforcing transparency in the use of existing energy levies like ESLA.
- Auditing and optimising operations within the distribution network
Call for Permanent Action and Sector Reform
ASEC reiterates its call for the permanent scrapping of the GHS 1 levy, not just a deferral. If the government is sincere about resolving Ghana’s energy sector challenges, it must prioritise deep structural reforms over short-term revenue strategies. Taxation must never be a substitute for reform. We urge government actors to listen to the voice of the people. A fuel tax that punishes the public for inefficiencies they did not cause is not the answer.
