The Africa Sustainable Energy Centre (ASEC) has called on the government to completely scrap the controversial GH¢1 per litre fuel levy, describing the recent decision to postpone its implementation as inadequate and out of touch with the realities facing Ghanaians.
In a statement issued by ASEC, expressed disappointment with both the government and the Chamber of Oil Marketing Companies (COMAC), accusing them of failing to protect consumer interests.
However, the Ghana Revenue Authority (GRA) had earlier announced the suspension of the levy’s implementation, following opposition from COMAC.
Meanwhile, ASEC argued that delaying the levy offers no real solution, adding that, postponing a flawed policy does not make it right.
“The levy is not reformed, it is simply delayed. That’s not progress,” the Centre said.
ASEC criticised COMAC for welcoming the postponement instead of pushing for a complete removal of the levy, adding that their stance fails to address the root concerns of the Ghanaian public.
“What consumers demanded was the total removal of the GH¢ 1 fuel levy, not a pause button. This decision does not alleviate public concern but it prolongs it,” it said.
According to ASEC, imposing new fuel taxes at a time when more than 40% of the pump price already consists of levies is unsustainable and could reverse recent economic gains.
“Fuel prices influence every sector, from transport and food to manufacturing and small businesses. An additional levy risks driving inflation, increasing hardship, and undermining the stability of the cedi,” it warned.
ASEC insists that Ghana’s energy sector woes are largely due to inefficiencies and poor governance, particularly within the Electricity Company of Ghana (ECG).
“If the government is sincere about solving Ghana’s energy challenges, it must prioritise deep structural reforms over short-term revenue strategies. Taxation must never be a substitute for reform,” it said.
The Centre urged the government to adopt long-term, transparent, and consumer-focused solutions by:
• Plugging leakages and stopping illegal connections in ECG’s network
• Rolling out smart metering and digital billing systems
• Ensuring accountability in the management of existing energy levies such as ESLA
• Conducting audits and optimising operations within the power distribution chain.
ASEC urged policymakers to listen to public sentiment and abandon tax-based approaches that burden consumers for systemic inefficiencies they did not create.
