Energy Expert Slams GH₵1 Fuel Levy as Regressive, Calls for Real Reform
Benjamin Nsiah, Executive Director of the Centre for Environment and Sustainable Energy, has strongly criticized the government’s introduction of a new GH₵1 fuel levy, describing it as a regressive policy that unfairly burdens consumers without addressing the root causes of the energy sector’s financial woes.
Speaking to Citi Business News, Nsiah questioned the government’s continued reliance on petroleum-based taxes as a primary solution to energy sector challenges.
“This method is tired and unfair,” he said. “It’s not about collecting more; it’s about managing what we have.”
The GH₵1 levy is a key component of the recently passed Energy Sector Levies (Amendment) Bill, 2025. According to Finance Minister Dr. Cassiel Ato Forson, the levy is intended to help settle $3.1 billion in legacy energy sector debts and raise GH₵1.2 billion for fuel procurement in 2026.
Dr. Forson has assured the public that the new levy will not result in higher fuel prices at the pump. However, this claim has been met with growing skepticism. The Minority Caucus in Parliament staged a walkout during the bill’s passage, citing concerns over lack of quorum and transparency in the legislative process.
Nsiah pushed back on the government’s assurances, arguing that levies like this have had real and immediate impacts on consumers for years—without leading to improved services or meaningful debt reduction.
“The idea that this won’t burden consumers is simply not accurate,” Nsiah stated. “Ghanaians have endured repeated price hikes since 2016, yet the sector remains deeply flawed.”
He pointed to past measures such as the Energy Sector Levies Act (ESLA), which he says have failed to bring about structural reform or financial stability.
“We keep taxing without fixing the system,” he added. “It’s time to fix the pipeline instead of just pouring more water into it.”
Nsiah urged the government to move away from revenue-first policymaking and instead focus on fiscal discipline, transparency, and operational efficiency in the energy sector—from procurement to distribution.
“We cannot continue to use consumers as a perpetual funding mechanism,” he concluded. “What we need is responsible governance, not another tax band-aid.”
