The Africa Sustainable Energy Centre (ASEC) has sharply criticised the government and the Chamber of Oil Marketing Companies (COMAC) for opting to postpone—not abolish—the contentious GH₵1 per litre fuel levy. In a strongly worded statement, ASEC condemned the delay as a breach of public trust and a disregard for the hardships faced by consumers who had demanded the complete withdrawal of the tax.
Originally slated to take effect this month, the levy, according to ASEC, threatens to erode recent economic stability and exacerbate the financial strain on Ghanaians already grappling with soaring fuel prices.
“Postponing a flawed policy does not make it right. The levy is not reformed, simply delayed. That’s not progress,” asserted Dr. Elvis Twumasi, ASEC’s Director of Research and Innovation.
The Centre’s reaction follows weeks of public opposition, stakeholder consultations, and protests against the surcharge. ASEC argued that the temporary hold fails to tackle the underlying structural challenges plaguing the energy sector. The organisation also criticised COMAC for siding with the delay, accusing the Chamber of neglecting its duty to protect consumer interests.
ASEC warned that this lack of decisive action only prolongs public frustration and defers inevitable economic pain rather than preventing it.
“The reality is, fuel prices impact every sector of the Ghanaian economy—from transport and food to manufacturing and small businesses,” the statement said.
“At a time when taxes already constitute over 40% of the pump price, imposing an additional levy risks driving inflation, deepening hardship, and reversing recent macroeconomic gains, particularly the cedi’s stabilisation.”
Beyond the immediate concerns over the levy, ASEC highlighted persistent inefficiencies and mismanagement within Ghana’s energy sector, notably pointing to the Electricity Company of Ghana (ECG). The Centre called on the government to prioritise addressing leakages, implementing smart metering, enhancing revenue collection, and ensuring transparency in the use of existing levies under the Energy Sector Levies Act (ESLA).
“Taxation must never be a substitute for reform,” Dr. Twumasi stressed, urging authorities to pursue comprehensive structural changes instead of relying on short-term fiscal fixes.
ASEC concluded by demanding the permanent cancellation of the GH₵1 fuel levy and renewed its call for broad-based energy sector reforms that prioritise the welfare of consumers.
