Fuel Levy may undermine gov’t call on traders to reduce prices—Dr Steve Manteaw

Policy Analyst Dr. Steve Manteaw believes the Fuel Levy is problematic. He argues it contradicts the government's push for lower prices.

The Energy Sector Levy Amendment Bill 2025 imposes a GHS 1 charge on every litre of fuel.

Finance Minister Dr. Cassiel Ato Forson introduced this bill urgently. He noted that the energy sector owes US$3.1 billion as of March 2025.

Forson assured Parliament that the levy would not raise consumer prices immediately. He claimed gains from a strong Ghana Cedi would absorb its impact.

However, Manteaw expressed concerns on social media about the levy’s effects. He warned it could increase transport fares and food prices, countering government efforts to lower costs.

Manteaw also criticized the lack of accountability in the levy’s implementation. He fears potential misuse of funds could occur without proper oversight.

In his post, he outlined several points:

1. The amendment is well-intended but lacks strong accountability measures.
2. It may negatively impact transport fares and food prices.
3. A GHS 1 charge per litre is too burdensome for consumers.
4. The levy should be applied per gallon or reduced to 25p per litre.
5. A sunset clause should be included to prevent it from becoming permanent.
6. We might use gains from the Cedi's strength and rising gold and cocoa prices to help reduce energy sector debt.

SHALOM!!!