This new levy could hike fuel prices- Dr Riverson – Nsemkeka
The Chief Executive Officer of the Association of Oil Marketing Companies (AOMCs), Dr Riverson Oppong Peprah, has warned that the newly approved GH¢1 fuel levy could drive fuel prices higher, adding further strain on consumers and the downstream sector.
Speaking on JoyNews AM today, June 4, he criticised the government for imposing the levy without proper consultation, stressing the potential consequences for fuel prices and the industry.
His comments come amid Parliament’s approval on Tuesday of the Energy Sector Levy (Amendment) Bill, 2025, which introduces an additional GH¢1 charge on every litre of petroleum products.
The bill was passed late Monday, 3rd June, as a measure to generate funds to tackle Ghana’s mounting energy sector debt, currently estimated at US$3.1 billion.
“Let’s be clear: last year, no political party manipulated fuel prices because they cannot control international benchmark prices and i was very happy,” he said.
“Let’s approach this holistically by fully understanding its impact. Last year, I was very pleased that, for the first time, no political party manipulated fuel prices for political gain, because no one controls international benchmark prices.
“When fuel prices began to fall, it wasn’t because the cedi gained stability; rather, it was due to a drop in plant prices caused by the decline in West Texas Intermediate (WTI) crude oil prices. Only after that did the cedi stabilise and support the downward trend.”
“As we speak today, plant prices are already rising again. So, I urge the government to reconsider this levy since there are other options,” he counselled.
He stressed that the downstream sector is unfairly burdened, despite already carrying significant levies, including ESLA, which funds energy sector debts.
“Why must the downstream sector always shoulder the cost when ordinary Ghanaians are also paying for fuel used in electricity generation?” Dr Peprah asked.
He warned that margins for oil marketing companies are shrinking dangerously close to zero, yet this issue remains ignored.
“My members at the oil marketing companies are seeing their margins steadily shrink, just to keep their operations viable, yet no one is addressing this issue. There are numerous challenges in the downstream sector that I expected the government and other stakeholders to be discussing.
“Instead, what we are hearing is about a one cedi levy being imposed without proper engagement with stakeholders,” he said, adding that before ESLA was reduced, there was extensive stakeholder consultation, and the change was accepted across the industry.
“There was proper stakeholder engagement before ESLA was introduced and adopted industry-wide.
“This GH¢1 levy, however, was slapped on without consultation.
“So, where are we headed with this one cedi levy? How sustainable is it, and how can it be justified economically?” he queried.