The government’s decision to impose a new GHȼ1 fuel levy has sparked widespread criticism, with experts and opposition leaders arguing that it will only exacerbate the country’s energy woes.
Benjamin Nsiah, Executive Director of the Centre for Environment and Sustainable Energy, described the levy as “regressive, uncreative and detrimental to already strained consumers.”
In an interview with Citi FM, Nsiah questioned the government’s reliance on petroleum taxes to address financial gaps in the energy sector.
“This approach is not only tired but unfair,” Nsiah said. “We’ve seen this playbook before. The Energy Sector Levies Act (ESLA), the Energy Sector Recovery Levy, and none of them has provided a lasting solution to the underlying issues. It’s not about collecting more. It’s about managing what’s already collected.”
Nsiah argued that the burden of repeated fuel levies has fallen disproportionately on consumers, who have been paying extra since 2016 with little visible impact on energy sector debts.
“For the Minister to say this won’t burden consumers is simply not accurate,” he cautioned. “The consumer has carried this burden for years, and without reform, this trend will continue.”
The Minority Caucus has also expressed opposition to the levy, walking out during the approval process and describing it as “inappropriate.”
Despite the criticism, Finance Minister Dr. Cassiel Ato Forson maintains that the levy will help settle $3.1 billion in energy sector arrears and raise an additional $1.2 billion to procure fuel for thermal generation in 2025.
“The problem is not revenue; it is management,” Nsiah concluded, emphasizing the need for fiscal discipline and operational efficiency in the energy sector.