The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has cautioned the government against imposing new levies on petroleum products, warning that such a move could undermine ongoing economic recovery efforts.
Mr. Amoah criticised the proposed GH¢1 increase in fuel levies contained in the Energy Sector Levy Amendment Bill, recently presented to Parliament by Finance Minister Dr. Cassiel Ato Forson.
“But to say we should go and collect new taxes on petroleum products at this point, when the same government seems to be making progress, I think it would be shooting itself in the foot and adding unnecessary pressure,” Mr. Amoah said.
He stressed that the focus should be on fixing persistent inefficiencies in the power sector rather than passing the burden to consumers through additional levies.
“For me, whatever we need to do to stop the bleeding in the power sector should be our priority. You cannot keep pouring water into a leaking bucket,” he argued.
Mr. Amoah warned that without addressing the structural issues within the energy sector, new taxes would only worsen the financial strain on Ghanaians and could trigger broader economic backlash.
“The earlier we stop the bleeding in that sector, the better. The government should reconsider this proposal carefully, it could create a bigger mess for the entire economy,” he said.
Meanwhile, Finance Minister Ato Forson defended the bill in Parliament, stating that at least $3.7 billion is needed to clear legacy debts in the energy sector, which currently stand at GHS3.1 billion. An additional $1.2 billion is required to secure fuel for thermal power generation through 2025.
He added that the impact of the proposed levy would be cushioned by recent gains made by the Ghanaian cedi.
