The Institute for Energy Security (IES) opposes the quick elimination of the GH₵1 fuel levy on petroleum goods.
They warn that eliminating the levy without a viable alternative will jeopardise attempts to stabilise Ghana’s energy sector and address existing sector indebtedness.
The policy think group acknowledged the financial strain that customers are under in a statement released on March 18, 2026, but emphasised that the fee is still a crucial instrument for stabilising the nation’s energy industry.
IES claims that the charge is crucial in helping the energy sector pay off its legacy obligations and cover the cost of fuel used to generate electricity.
The institute cautioned that its sudden removal would interfere with ongoing changes meant to guarantee the nation’s long-term energy security.
According to the institute, “the levy remains a critical fiscal and energy sector stabilisation tool,” and eliminating it without a viable substitute might seriously impair attempts to control the sector’s financial deficits.
IES also warned that Ghana’s fiscal deficits would increase if the charge was removed too soon.
The organization pointed out that the government might eventually have to use other strategies, like higher utility rates or additional levies, to recoup the lost revenue.
The institute reaffirmed its dedication to offering evidence-based policy suggestions to assist Ghana’s energy industry in becoming resilient and sustainable.
IES also cited its previous advice to the government to halt the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) framework’s Price Stabilisation and Recovery Levy component during times of rising oil prices worldwide.
The idea, according to the institute, was intended to protect customers while preserving the energy industry’s financial stability.
IES signed the statement urging decision-makers to thoroughly weigh the implications for the energy sector and the economy as a whole before deciding on the fuel levy.
Source: newsthemegh.com