In a twist that feels more coordinated than coincidental, Ghana and South Africa have both moved within hours of each other to hike fuel taxes, despite falling global oil prices. The rare synchronicity in policy has sparked debate over whether the two nations are quietly aligning strategies to shore up their energy finances or simply seizing the same economic moment.
On Tuesday, Ghana’s Finance Minister Dr. Cassiel Ato Forson laid before Parliament an urgent bill to increase the Energy Sector Recovery Levy from 20 pesewas to GH¢1 per litre on petrol and diesel. Framed as a measure to tackle the country’s $3.1 billion energy sector debt and fuel thermal plants, the tax hike is expected to generate vital revenue without, according to Forson, significantly raising pump prices, thanks to the recent strength of the Ghanaian cedi.
“It’s not about burdening consumers. It’s about keeping the lights on and the economy stable,” Forson told Parliament.
But just across the continent, and almost simultaneously, South Africa’s Finance Minister Enoch Godongwana was executing a similar move. On the same day, the Central Energy Fund and the Department of Mineral Resources and Energy announced a token decrease of just 0.05 rand per litre in petrol prices, an anticlimax driven by the government’s decision to raise fuel levies for the first time in four years.
The levy increase, 0.16 rand per litre on petrol and 0.15 rand on diesel, comes as the South African government hunts for new revenue streams after its attempt to increase value-added tax (VAT) was blocked by Parliament. The timing couldn’t be more strategic: lower global oil prices cushion the political blow of higher domestic levies. A court challenge by the opposition Economic Freedom Fighters (EFF) to halt the hike was dismissed, clearing the way for implementation.
Fuel taxes now make up about 30% of the total retail price at South African pumps, adding pressure to public transport costs and goods movement, even as inflation projections have been revised downward.
Critics in both countries accuse the governments of using falling oil prices as cover for unpopular tax hikes. In Ghana, Minority Leader Alexander Afenyo-Markin slammed the move as “a backdoor tax” disguised as economic management. In South Africa, fuel users saw what should have been meaningful price relief reduced to a trickle.
Yet, analysts say the moves are economically sound—if politically sensitive. “It’s textbook fiscal opportunism,” said a Johannesburg-based economist. “But whether accidental or deliberate, the timing is uncanny.”
As citizens brace for the real-world impact of the changes, one question lingers in the air: did Accra and Pretoria swap notes—or just read the same playbook?
