Fuel Levy lacks strong accountability mechanism; funds may be misapplied—Steve Manteaw

Policy Analyst Dr. Steve Manteaw has concerns about the new Fuel Tax.

He believes it is well-intended but lacks accountability.

This absence of accountability could lead to misuse and misapplication.

He warns that it may raise transport fares and food prices.

This would contradict the government's request for traders to lower prices.

In a Facebook post, he shared his views on the Energy Sector Levy amendment:

1. The tax is well intended but lacks strong accountability, risking abuse.

2. It may increase transport fares and food prices, undermining price reduction efforts.

3. A tax on a liter of petroleum products is too burdensome for consumers.

4. It should be based on a gallon or reduced to 25p per liter.

5. A sunset clause should be included to prevent it from becoming permanent.

6. We could use gains from the Cedi's rise and higher gold and cocoa prices to reduce energy sector debt.

SHALOM!!!

Meanwhile, Parliament passed the Energy Sector Levies (Amendment) Bill, 2025.

This bill allows a GHȼ1 increase in petroleum product levies.

Finance Minister Dr. Cassiel Ato Forson stated this will help settle $3.1 billion in energy sector debts.

It will also raise an additional $1.2 billion for fuel procurement in 2025.

He assured that this levy would not increase ex-pump fuel prices.

However, skepticism remains among some lawmakers.

The Minority Caucus walked out during the approval process, calling the levy inappropriate.

They alleged that the Majority did not have enough members present to pass the bill.