…says postponing implementation ‘no victory’
The Africa Sustainable Energy Centre (ASEC) has expressed strong disappointment in the government and the Chamber of Oil Marketing Companies (COMAC) over the decision to postpone, rather than cancel, the implementation of the controversial GH¢1 per litre fuel levy.
Following weeks of public backlash and stakeholder consultations, ASEC maintains that deferring the levy is “unacceptable” and out of touch with the current socioeconomic realities of Ghanaians.
Postponing a flawed policy does not make it right,” ASEC said in a statement signed by its Director of Research and Innovation, Dr. Elvis Twumasi. “The levy is not reformed—it’s simply delayed. That’s not progress.”
Postponement no substitute for reform
ASEC criticised COMAC’s endorsement of the delay, describing it as a sign of complacency and a failure to respond to the urgent challenges facing the energy sector. The Centre stressed that the decision merely prolongs uncertainty without addressing fundamental concerns.
“What consumers demanded was the total removal of the GH¢1 fuel levy—not a pause button,” ASEC noted. “Ghana cannot afford policies that delay pain but do not prevent it.”
With taxes already accounting for over 40% of fuel prices at the pump, ASEC warned that introducing a new levy—no matter when it takes effect—could further fuel inflation, exacerbate economic hardship, and potentially undermine macroeconomic stability, including recent gains in the value of the cedi.
Root causes ignored
ASEC argued that Ghana’s ongoing energy sector problems stem from deep-seated inefficiencies and governance failures, particularly at the Electricity Company of Ghana (ECG).
“It is disheartening that after extensive engagement, the government failed to put consumers at the centre of policy decisions,” it stated.
Rather than resorting to additional taxation, ASEC called on authorities to focus on long-overdue reforms within the sector, including: plugging leakages and illegal connections in ECG’s operations, rolling out smart metering and digital billing systems, enhancing transparency in the management of energy levies such as ESLA and conducting operational audits and restructuring the distribution network
Permanent scrapping, not delay
The think-tank reiterated its call for the complete abolition of the GH¢1 fuel levy, insisting that temporary deferrals do not equate to progress.
“Taxation must never be a substitute for reform. A fuel tax that punishes the public for inefficiencies they did not create is unjustifiable,” statement read.
The statement concluded by urging the government to demonstrate leadership by prioritising structural reform over short-term revenue mobilisation strategies.
