GH₵1 Fuel Levy Burdens Consumers Without Solving Sector Woes – Energy Analyst Warns – GhArticles.com

Benjamin Nsiah, Executive Director of the Centre for Environment and Sustainable Energy, has criticized the government’s newly approved GH₵1 fuel levy, describing it as unjustified, regressive, and an undue burden on Ghanaian consumers.

Speaking in an interview with Citi Business News, Nsiah questioned the government’s continued reliance on petroleum taxes to address the country’s energy sector debt, warning that such measures lack innovation and fail to address the root causes of the sector’s persistent financial problems.

“This approach is not only tired but unfair,” Nsiah stated. “We’ve seen this playbook before, the Energy Sector Levies Act, the Energy Sector Recovery Levy, and none of them have offered a sustainable solution. It’s not about collecting more revenue; it’s about managing what is already collected.”

He argued that consumers have carried the financial burden of similar levies since 2016, yet the sector remains deeply indebted. The newly approved levy, expected to generate GH₵5.7 billion, is intended to reduce the energy sector’s $3.1 billion debt and raise an additional $1.2 billion for thermal fuel procurement in 2025.

Finance Minister Dr. Cassiel Ato Forson has maintained that the levy will not impact ex-pump fuel prices, attributing this to the strong performance of the Ghana cedi. However, Nsiah dismissed this assurance, stating, “For the Minister to say this won’t burden consumers is simply not accurate. The consumer has carried this burden for years.”

He emphasized the need for structural reforms rather than repeated taxation, urging government to prioritize fiscal discipline and operational efficiency across the energy value chain.

“The problem is not revenue; it is management,” Nsiah concluded.

Parliament passed the Energy Sector Levy (Amendment) Bill, 2025 on June 3, despite a walkout by the Minority Caucus, who deemed the bill inappropriate and questioned the legality of the vote due to a possible lack of quorum.