Ghana CSOs Propose GH¢1.65 Fuel Levy Cut to Ease Consumer Burden

Four civil society organisations in Ghana have proposed a cumulative GH¢1.65 reduction in fuel levies and margins, in response to a directive by President John Dramani Mahama urging a review of petroleum taxes to cushion consumers.

The groups: IMANI Africa, Chamber of Petroleum Consumers, Institute for Energy Securities and Institute for Energy Policy Research, said the proposed reduction should be implemented over two months, rather than the four weeks earlier suggested by the government.

In a joint statement issued on Tuesday, the organisations argued that the temporary reduction would not significantly strain the country’s fiscal position, citing expected windfalls from upstream crude production and exports within the period.

They also called for broader reforms to address recurring fuel price increases, recommending a rationalisation of existing taxes, levies and margins, with a view to permanently eliminating those deemed burdensome to citizens and the economy.

As part of longer-term measures, the CSOs proposed the establishment of a Strategic Reserve Fund to support fuel price stabilisation.

They suggested that revenues from selected levies under review could be redirected to finance the purchase and storage of petroleum products for use during supply disruptions.

Furthermore, the groups urged the government to modernise and retool key energy infrastructure, including the Tema Oil Refinery and the Bulk Oil Storage and Transportation Company. According to them, increased investment in refining and storage capacity would enhance Ghana’s ability to process its crude output and improve fuel security.