Energy Analyst Blasts Fuel Levy as Lazy Policy, Calls for Real Reform

Benjamin Nsiah, Executive Director of the Centre for Environment and Sustainable Energy, criticized the government's new GHȼ1 fuel levy. He called it a regressive policy that burdens consumers.

In an interview with Citi Business News, Nsiah questioned the government's reliance on petroleum taxes. He warned that this approach is unsustainable and ineffective.

“This method is tired and unfair,” he stated. He noted past measures like the Energy Sector Levies Act (ESLA) have failed to fix deep-rooted issues in the energy sector. “It’s not about collecting more; it’s about managing what we have.”

The GHȼ1 levy is part of the recently passed Energy Sector Levies (Amendment) Bill, 2025. Finance Minister Dr. Cassiel Ato Forson said it aims to settle $3.1 billion in energy sector debts and raise GHȼ1.2 billion for fuel procurement next year.

Dr. Forson claims the levy will not increase fuel prices at the pump. However, this assertion has faced skepticism, especially from opposition members. The Minority Caucus staged a walkout during the bill's passage, arguing there was insufficient quorum.

Nsiah pointed out that such levies have immediate effects on consumers. They have faced repeated price hikes since 2016 without improvements in service or debt reduction.

“The idea that this won’t burden consumers is simply not accurate,” he said. He emphasized that Ghanaians have been shouldering this burden for years without real reform.

Nsiah urged the government to shift away from revenue-first policies. Instead, he called for fiscal discipline, transparency, and efficiency in energy operations—from procurement to distribution.

“We need to stop using consumers as a funding mechanism,” he insisted. “It’s time to fix the pipeline instead of just pouring more water into it.”