Scrapping GH₵1 Fuel Levy Premature, Could Undermine Energy Sector Stability — IES Says
The Institute for Energy Security (IES) has opposed calls for the immediate removal of the GH₵1 levy on petroleum products, warning that such a move could undermine ongoing efforts to stabilise Ghana’s energy sector and worsen fiscal pressures.
In a statement issued on March 18, 2026, the policy think tank acknowledged growing public concerns over rising fuel prices and the broader cost-of-living challenges but maintained that scrapping the levy at this time would be premature.
According to IES, the levy continues to serve as a critical fiscal and energy sector stabilisation tool, particularly in addressing legacy debts and supporting the cost of fuel used in power generation.
“The levy remains a critical fiscal and energy sector stabilization tool. Its removal, without a clear and sustainable alternative, could significantly undermine efforts to address legacy debts in the energy sector, address the cost of fuel in power generation and disrupt ongoing reforms aimed at ensuring long-term energy security,” the statement noted.
The Institute further cautioned that removing the levy could widen the country’s fiscal deficit and potentially transfer the burden onto taxpayers through alternative revenue measures or higher utility tariffs.
IES argued that such an outcome could ultimately negate any short-term relief consumers may experience at the fuel pumps.
While reiterating its commitment to evidence-based policy advocacy, the Institute referenced its earlier recommendation for the government to suspend the price stabilisation and recovery component of the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) in response to global oil price increases.
IES maintained that a more measured and strategic approach is required to balance consumer relief with the long-term sustainability of the energy sector.
