The Chamber of Petroleum Consumers (COPEC) has urged the government to review the GH¢1 levy on petroleum products as rising international crude oil prices continue to increase pressure on fuel prices in Ghana.
COPEC Executive Secretary Duncan Amoah said the levy, which was introduced to support the power sector, should be gradually reduced now that electricity supply had become relatively stable.
He proposed that the charge be lowered to 50 pesewas to provide relief to consumers and businesses while allowing the government to continue generating revenue for the energy sector.
Speaking to Citi Business News ahead of the 2026 mid-year budget review, Mr Amoah said the levy should not become a permanent burden on consumers.
“I do not think that that levy should also remain in perpetuity. Up to a point, we should be able to ease down on it and tell the Ghanaian that we had a crisis situation. We have been able to stabilise that. Maybe we can reduce it to 50 pesewas at some point,” he said.
He argued that reducing the levy could help lower the cost of fuel and ease pressure on the wider economy.
According to Mr Amoah, high fuel prices do not only affect motorists and businesses but also increase government expenditure by raising the cost of public contracts and operations.
“Anytime fuel prices are higher, government will pay more. Government contracts would equally escalate. So it is in our collective interest as a people to bring down the cost of fuel so that government itself does not overspend or overrun its own budget,” he said.
COPEC’s proposal comes amid renewed geopolitical tensions that have pushed up international crude oil prices and heightened concerns about further increases in domestic pump prices.
The depreciation or appreciation of the cedi against major international currencies also continues to influence local fuel pricing, while oil marketing companies adjust prices in line with developments in the international market.
Recent increases have also reflected higher price floors set by the National Petroleum Authority, raising concerns that prolonged geopolitical tensions could lead to additional increases in future pricing windows.
Mr Amoah therefore called for a review of domestic taxes and levies, particularly the GH¢1 charge, as part of measures to cushion consumers and businesses.
“So some of the taxes, particularly the GH¢1 [fuel levy], we could begin looking at ways to bring it down,” he stressed.
On the power sector, Mr Amoah welcomed the relative stability in electricity supply but urged the Ministry of Finance to continue making timely payments to Independent Power Producers (IPPs).
He said regular payments would help reduce outstanding debts to the producers and sustain confidence in the power sector.
