IES calls for Suspension of Price Stabilisation and Recovery Levy on Diesel
The Institute for Energy Security (IES) is urging government to immediately suspend the Price Stabilisation and Recovery Levy (PSRL) on gasoil (diesel) in the upcoming petroleum pricing window in order to provide relief to consumers amid rising global oil prices.
In a statement issued on March 15, 2026, the energy policy think tank noted that recent developments in the international oil market, driven by geopolitical tensions and global supply uncertainties, are exerting upward pressure on petroleum product prices.
According to the IES, these external factors – together with freight risks and global price volatility – continue to influence domestic fuel pricing in Ghana.
The Institute indicated that pump prices for petrol and diesel are expected to increase in the second pricing window of March.
“Although Ghana’s relatively stable currency has helped moderate the full impact of international price increases, consumers and businesses will continue to face cost pressures,” the statement said.
The policy institute argued that a temporary suspension of the PSRL would provide some relief to consumers without undermining the broader financial stability of the energy sector.
Introduced as part of Ghana’s petroleum pricing framework, the Price Stabilisation and Recovery Levy was designed to function as a counter-cyclical mechanism, enabling the government to cushion consumers when global fuel prices rise and rebuild the stabilisation buffer when prices decline.
IES maintains that suspending the levy at a time when pump prices remain elevated would therefore be consistent with the original policy rationale behind the levy.
While acknowledging that the direct relief from removing the PSRL may appear modest on a per-litre basis, the Institute noted that the cumulative impact across the economy could help ease inflationary pressures.
“At the same time, other structural levies in the petroleum price build-up play critical roles in supporting the financial sustainability of Ghana’s energy sector. Therefore, a targeted intervention through the suspension of the PSRL represents a balanced approach that protects both consumers and the integrity of energy sector financing,” it stated.
The Institute also commended ongoing efforts by the National Petroleum Authority (NPA) to maintain transparency and efficiency in the downstream petroleum pricing regime.
Additionally, it encouraged government to strengthen domestic energy resilience through improved storage management by the Bulk Oil Storage and Transportation Company (BOST), enhanced domestic refining capacity at the Tema Oil Refinery (TOR), and increased operational efficiency across the downstream petroleum sector.
