Ghanaians may be enjoying fuel price stability in addition to a possible drop in this pricing window but the founding President of IMANI Africa, Franklin Cudjoe, seems not to be enthused with the development.
The policy analyst is questioning the motive behind this anticipated drop in fuel prices at a time when the government has suspended the GHC 1 per litre energy levy amid the escalating Israeli-Iranian tension.
This follows the forecast by the Chamber of Oil Marketing Companies (COMAC) that prices at the pumps are expected to drop in the second pricing window in July. COMAC predicts that petrol prices are expected to drop by up to 2.2%. Diesel could drop by 4.3% while LPG is likely to drop by 3.2%, all starting today, Monday, June 16, 2025.
The time that the prices are expected to drop coincides with the initial implementation of the GHC 1 per litre energy sector levy before its withdrawal.
Franklin Cudjoe cannot fathom why a government that is seeking to raise revenue from the sector to deal with the country’s energy challenges could approve such a price reduction. He is raising critical concerns over what he describes as a politically expedient but potentially risky decision.
In a social media post, Cudjoe questioned the timing and sincerity of the move, saying it reflects a cleverly crafted political maneuver rather than genuine economic relief.
“Okay, the GHC 1 per litre was to be effectively charged on fuel today. It was suspended because the government wanted to assess the impact of the rise in crude price as a result of the Israeli-Iranian war on retail fuel and consumers’ pockets. Then, the government reduces the price of fuel? I thought it wanted the money to fix dumsor?” he wrote.
Cudjoe said while the price drop may seem like welcome news for Ghanaians burdened by high living costs, it also raises uncomfortable questions about consistency in government policy and long-term sustainability.
He likened the decision to “smart politics” aimed at dismantling the economic narrative used by the previous administration to justify fuel tax hikes during the Russia-Ukraine war, describing it as a clever strategy, but one that must be handled with caution.
“This is funny but a clever political game aimed at shattering the aged justification the last government gave for imposing hefty and shackling economic rents due to the Russian-Ukrainian war. Maybe it’s smart politics, but the government should be careful,” he warned.
The IMANI President’s remarks come at a time when the government is walking a tightrope between generating revenue for critical energy sector interventions and shielding consumers from external price shocks.
By opting to freeze the levy and allow pump prices to drop, even as global crude prices surge due to geopolitical tensions, the government appears to be prioritizing short-term public sentiment over immediate revenue needs.
