The coalition of civil society organisations (CSOs) is not just demanding a significant fuel price cut; they are also showing, line by line, how the reduction can actually be achieved.
CSOs, including IMANI Africa, COPEC Ghana, INSTEPR, and Institute for Energy Security, have broken down Ghana’s petroleum price build-up and identified specific taxes, levies, and margins that can be trimmed, without crippling the sector.
For these groups, fuel prices in Ghana are not just driven by global oil costs, but also by a stack of local charges, taxes, and levies. In their view, with careful adjustment of these taxes and levies, the prices of fuel can significantly fall at the pump.
Where the GHC1.65p Comes From
The coalition’s recommended GHC1.65 reduction is not arbitrary. It is a sum of targeted cuts across several components of the fuel price structure.
Some levies in the price buildup, they argue, should remain untouched. These particularly include the Energy Sector Shortfall and Debt Repayment Levy (currently 0.95 GHp), which supports critical obligations in the power sector.
This signals an effort to avoid destabilising already fragile energy finances. But others, they say, can be reduced, at least temporarily: Here is how they believe the GHC1.65 could be realized;
The Road Fund Levy could be cut from 0.48 GHp to 0.24 GHp
The Energy Fund Levy could be reduced from 1.00 GHp to 0.50 GHp
The Special Petroleum Tax was trimmed from 0.46 GHp to 0.23 GHp
These three alone account for a significant portion of the proposed relief.
Beyond taxes, the coalition also targets margins within the distribution chain:
The BOST margin halved from 0.12 GHp to 0.06 GHp
The Fuel Marking Margin sharply reduced from 0.09 GHp to 0.04 GHp
The Unified Petroleum Pricing Fund (UPPF) cut from 0.90 GHp to 0.45 GHp
The addition of these adjustments, both the margins and the taxes and levies, summed up to the GHC1.65 proposed by the group.
Interestingly, some components, like the Primary Distribution Margin and the Price Stabilisation and Recovery Levy (PSRL), are left unchanged, reinforcing the coalition’s argument that this is a balanced, not reckless, intervention.
A Temporary Reset, Not a Structural Shock
The CSOs clarified that this is not a call for permanent tax cuts. Instead, they propose a two-month window of reduced charges to provide immediate relief during a period of economic strain.
This temporary approach is key. It allows the government to respond to public pressure without locking itself into long-term revenue losses or undermining sector viability.
Why This Matters to Everyday Ghanaians
Fuel prices sit at the heart of Ghana’s cost of living. When they rise, transport fares increase, food prices follow, and businesses struggle with higher operating costs.
By targeting the price build-up directly, the coalition’s proposal offers a practical path to relief, one that could be felt quickly across the economy.
The proposal also reflects a broader calculation. The CSOs believe Ghana has room to act, especially with expected inflows from crude oil exports providing a temporary fiscal cushion.
In essence, they are asking that if there is a moment to ease the burden on citizens, why not now?
For now, whether the government will adopt these recommendations remains to be seen. But the significance of the coalition’s work lies in its clarity; it moves the debate from “whether” fuel prices should be reduced to “how” it can realistically be done.
