The Founding President of IMANI Africa, Franklin Cudjoe, has backed government’s decision to suspend the controversial Energy Sector Levy, referred to as the Fuel Levy, calling it a “sensible and necessary” move amid rising global oil prices.
This comes after the Ghana Revenue Authority (GRA) issued a directive on June 13 to indefinitely postpone the implementation of the GHS 1 per litre levy. The decision is widely viewed as a response to mounting tensions in the Middle East, especially the escalating Iran-Israel conflict, which is likely to trigger global oil price hikes.
Cudjoe, commenting via Facebook, praised the government for pausing the policy to reassess its economic impact. “As oil prices are set to rise due to tension in the Middle East, the government must assess the situation and likely impact before rolling out the GH¢1 ‘dumsor’ levy,” he noted.
He urged policymakers to adopt forward-thinking strategies, including accelerating domestic oil production, making prudent use of recent foreign exchange and gold windfalls, and prioritizing investments in agriculture and key sectors like Ghanaian tourism. According to him, these measures can cushion the economy and help Ghana navigate the volatility in the global energy market.
He also called on the government to recover misappropriated public funds from the past eight years, arguing that redirecting these funds into essential services and economic buffers would reduce the need for burdensome levies and help stimulate sectors that can drive job creation, such as Ghanaian tourism.
However, the Energy Sector Levies (Amendment) Act, 2025, which introduced the Fuel Levy, has faced sharp criticism from the Minority in Parliament. Critics argue that the government acted without adequate consultation and displayed inconsistency in policy execution. Many believe the U-turn signals a reactive rather than proactive approach to economic management.
Nonetheless, the government insists the suspension is aimed at protecting citizens from financial strain. President Mahama has tasked the Ministries of Finance and Energy to analyze how oil price fluctuations may affect Ghana’s economy, with a promise to design policies that minimize the impact on the population.
This policy reversal is being closely watched by stakeholders across sectors, particularly those in Ghanaian tourism, transport, and agriculture. Fuel prices directly influence operational costs in tourism, a sector still recovering from the shocks of the COVID-19 pandemic.
Several tourism operators have welcomed the suspension, stating that fuel price stability is crucial for attracting both local and international visitors. An increase in transportation and service costs could have made Ghana less competitive compared to other African destinations.
Further, the tourism industry plays a vital role in the economy, providing thousands of jobs and generating much-needed foreign exchange.
Experts say the government’s decision to pause and reassess is not only economically sound but politically strategic. “If Ghana is to remain competitive and resilient, especially in sectors like Ghanaian tourism, we must adopt policies that reflect both global realities and local needs,” the analyst said.
The IMANI president’s comments add weight to the growing call for smarter fiscal management and more inclusive policymaking. His recommendations of boosting local oil output, investing in agriculture, and supporting industries like Ghanaian tourism, reflect a broader desire for sustainable economic growth driven by internal strength rather than external borrowing.
As global oil markets remain volatile, Ghana’s ability to shield its economy, especially critical sectors like Ghanaian tourism, will depend heavily on prudent decision-making, transparency, and the timely implementation of strategic reforms.
