The Chamber of Petroleum Consumers (COPEC) has raised serious concerns over the government’s proposal to introduce a 10-pesewa levy on petroleum products, cautioning that the move could have significant economic repercussions for consumers and businesses alike.
The levy, proposed by Interior Minister Mohammed Muntaka Mubarak, is intended to fund the acquisition of fire tenders for the Ghana National Fire Service (GNFS), which has long struggled with outdated firefighting equipment. While acknowledging the need for improved emergency response infrastructure, COPEC argues that placing the financial burden on fuel consumers is neither sustainable nor economically prudent.
Speaking on Eyewitness News, COPEC Executive Secretary Duncan Amoah emphasized the broader economic implications of the proposed tax, particularly for Ghana’s transport sector and labor market.
“Policymakers must recognize the mounting financial pressure on Ghanaians. Resorting to fuel levies as a quick-fix solution will only exacerbate economic hardships. If you project fuel consumption at 460 million liters monthly, a 10-pesewa levy would generate approximately GHC46 million per month. However, this additional cost could trigger a chain reaction—higher transport fares, increased operational expenses for businesses, and demands for wage hikes, which could ultimately drive inflation upward,” he warned.
Amoah further urged the government to explore alternative funding mechanisms through broader stakeholder engagement, rather than continually increasing taxes on fuel—a move that could erode consumer purchasing power and stifle economic growth.
“A consultative approach with the public and industry stakeholders could yield viable solutions for funding essential services without imposing excessive financial strain. Once taxes on fuel are introduced, they rarely get reversed, and the cumulative effect on fuel prices could be detrimental,” he added.
COPEC’s warning underscores a broader debate on taxation policies in Ghana, as businesses and consumers grapple with rising costs in an already challenging economic environment. Industry leaders and analysts are calling for more strategic fiscal measures that balance revenue generation with economic stability, ensuring that essential services receive the necessary funding without disrupting key sectors.
