Ghanaians are opposing the government’s decision to impose a Gh¢1 levy on every liter of fuel, including petrol, diesel, and LPG to settle over $3 billion in energy sector debt.
They are shocked that the government is adding more fuel taxes instead of exploring alternative solutions.
Many have taken to traditional and social media platforms to express objections to the levy, despite President John Dramani Mahama and some of his appointees defending it.
Ghanaians consume over 450 million liters of petrol, diesel, and LPG monthly.
According to National Petroleum Authority data for March 2025, petrol consumption was 232,497,100 liters, diesel consumption was 219,245,300 liters, and LPG consumption was 26,712,272 kilograms.
If the new Gh¢1 tax per liter is implemented, the government would generate over Gh¢450 million monthly.”
Energy sector civil society groups, including the Africa Centre for Energy Policy (ACEP) and the Chamber of Petroleum Consumers, Ghana, have raised concerns about the levy, describing it as a nuisance levy.
The Chamber of Bulk Oil Distributors (CBOD) and the Chamber of Oil Marketing Companies (COMAC) have also objected to the levy.
Commenting on the issue on Accra-based Joy FM, Benjamin Boakye, Executive Director of the Africa Centre for Energy Policy (ACEP), said: ‘Slapping an additional Gh¢1 on the consumer seems excessive. Essentially, every time you fill your car, you’re paying almost Gh¢200 to support the energy sector, covering years of inefficiencies. That’s a significant burden on the consumer.’
Mr. Boakye warned that businesses, particularly those with large fleets, would face substantial costs: ‘Companies with fleets would have to pay hundreds of thousands monthly to accommodate this adjustment. It won’t be an easy relief’.
In a statement expressing concern about the new fuel levy, the Chamber of Oil Marketing Companies (COMAC) noted that ‘the cumulative impact of rising taxes, limited margins, and increasing financial obligations threatens the sustainability of many Oil Marketing Companies (OMCs) and Liquefied Petroleum Gas Marketing Companies (LPGMCs) within the sector.’
The chamber warned that a significant number of OMCs/LPGMCs are already debt-burdened, and further fiscal pressure could lead to widespread insolvency, job losses, and broader economic disruption. COMAC emphasized that addressing energy sector debt shouldn’t compromise the downstream petroleum industry’s survival, competitiveness, or consumer protection, especially given structural inefficiencies in the power and electricity sectors.
The Chamber cautioned that rising LPG prices could force low-income households to revert to biomass fuels, undermining the government’s Cylinder Recirculation Model (CRM), public health, and environmental goals. COMAC demanded immediate engagement with the Ministry of Energy and relevant agencies to explore balanced, evidence-based policy solutions.
“We urge the government to collaborate with industry stakeholders to ensure fiscal policy decisions reflect operational realities, protecting business survival, promoting energy equity, and advancing Ghana’s development agenda,’’ COMAC said.
Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, also commented on the new fuel levy, describing it as counterproductive and warning of dire consequences. ‘This move is like creating holes in our pockets and taking whatever you find; it doesn’t help,’ he stated.
Amoah emphasized that efforts should focus on stopping financial losses in the power sector. ‘For me, whatever we need to do to stop the bleeding in the power sector should be our key focus at this point,’ he said.
He noted that the recent fuel price reduction would be rendered meaningless by the levy. ‘We were excited about the fuel price reduction, though we said it was woefully inadequate. But if fuel prices drop by 0.50 pesewas and we now have to pay an additional Gh¢1.00, the relief will be lost.’
Amoah warned that fuel vendors would likely increase prices, undoing any relief: ‘People selling fuel at Gh¢12.52 will now sell at Gh¢13.52. Adding other costs, we’ll be back to the high levels we protested against. With the cedi depreciating, the consequences of this levy will be dire for all of us.’
Source: https://energynewsafrica.com
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