GH¢1 per litre levy not an effective way of addressing energy problem - ACEP’s Ben Boakye

Benjamin Boakye, the Executive Director of the Africa Centre for Energy Policy (ACEP), is concerned about a new GH¢1 levy on petroleum products. He believes it unfairly burdens consumers and does not solve energy sector challenges.

Speaking on Joy FM’s Super Morning Show, Mr. Boakye questioned the levy’s effectiveness. He noted that while the energy sector needs funding, this approach may not be ideal.

He stated, “We all know the problems in the energy sector. But I’m not sure a GH¢1 imposition on consumers is effective.”

Mr. Boakye explained that although the cedi has appreciated recently, it doesn’t benefit ordinary consumers. He said, “The value of the currency is still the same.”

According to him, any real benefits from currency performance will likely help the energy sector more than the public.

He added that businesses paying dollar bills would feel less impact from cedi appreciation. “What you could do with 98 pesewas before can now buy more,” he explained.

Mr. Boakye described the new levy as an extra burden on struggling consumers. He said, “To impose an additional 1 cedi seems excessive.”

He warned that businesses with large fleets will face significant costs due to this levy. “They may need to spend hundreds of thousands each month,” he cautioned.

He also pointed out confusion among people regarding how cedi appreciation affects their lives. “Many are struggling to understand this change,” he noted.

While acknowledging potential revenue from the levy, Mr. Boakye insisted it won’t fully resolve long-standing issues in the energy sector.

“This is just one problem in a larger context,” he concluded.