Cut GH¢1 fuel levy to 50 pesewas - COPEC urges government

The Chamber of Petroleum Consumers (COPEC) has called on government to reduce the GH¢1 fuel levy to 50 pesewas in order to lower fuel prices and ease the financial burden on consumers and businesses.

The levy was introduced to address challenges in Ghana’s power sector, but the Executive Secretary of COPEC, Duncan Amoah, insists it should not become a permanent charge.

Speaking on Citi Business ahead of the 2026 Mid-Year Budget Review scheduled for July 23, 2026, Amoah said government could gradually reduce the levy while still raising sufficient revenue to support the energy sector.

“I do not think that levy should remain in perpetuity. Up to a point, we should be able to ease down on it and tell Ghanaians that we had a crisis situation, we have stabilized it, and maybe reduce it to 50 pesewas at some point,” he said.

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According to Amoah, reducing the levy would lower fuel prices, which in turn would reduce government spending on goods, services, and contracts.

He explained that higher fuel costs increase transportation and operational expenses, making government projects more expensive and placing additional pressure on the national budget.

COPEC’s proposal comes as rising global crude oil prices, driven by renewed geopolitical tensions, continue to push fuel prices higher in Ghana.

The increase has also been influenced by fluctuations in the cedi’s performance against major foreign currencies and higher price benchmarks set by the National Petroleum Authority (NPA).

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Amoah believes reviewing domestic taxes and levies on petroleum products, particularly the GH¢1 fuel levy, would provide much‑needed relief for households and businesses.

He commended the recent stability in electricity supply but urged the Ministry of Finance to continue making timely payments to Independent Power Producers (IPPs) to sustain progress in the energy sector.

DR/SA

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