Energy expert Kwadwo Poku, Executive Director of the Institute for Energy Policies and Research, has explained that the government’s ability to reduce rising fuel costs is severely constrained by revenue shortfalls and restrictions under the IMF-supported programme.
Speaking on The AM Show, Mr. Poku said public frustration over high fuel prices is understandable, but fiscal limitations leave little room for relief measures. He noted that key mechanisms like the Price Stabilisation and Recovery Levy, intended to cushion consumers during price hikes, are considered government revenue under IMF rules and therefore cannot be lowered.
The analyst highlighted that as of November 2025, the government had mobilised GH₵187 billion of a targeted GH₵220 billion, falling short of expectations. Attempts to raise additional funds through Treasury bills also underperformed, achieving GH₵10 billion against a GH₵40 billion target, leaving a GH₵30 billion financing gap.
Although recent reforms have removed some levies, including the E-levy, most charges embedded in fuel prices remain due to ongoing fiscal pressures. Final revenue figures for 2025 are anticipated with the release of the Bank of Ghana’s first-quarter data, which will clarify the nation’s financial position.
Mr. Poku emphasized that until government revenue and fiscal space improve, interventions to reduce fuel costs will remain limited, leaving consumers to bear the brunt of global price fluctuations.
