Suspend GH¢1 fuel levy to ease burden on consumers - Dr Krugu

Spokesperson for the New Patriotic Party (NPP) Environment and Natural Resources Sector Policy Committee, Dr John Kingsley Krugu, has backed calls by the Chamber of Oil Marketing Companies (COMAC) for the temporary suspension of the GH¢1 fuel levy, arguing that the government should help cushion consumers against rising fuel prices and the weakening cedi.

Speaking in an interview on Channel One TV on Tuesday, July 28, 2026, he said the conditions that justified the introduction of the levy had changed, making it necessary for the government to review the policy.

He acknowledged that the government initially introduced the levy to raise revenue to address challenges in the energy sector, including accumulated debts, but argued that it did so at a time when falling fuel prices and a stronger cedi provided some relief for consumers.

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“The government needed that money because it had to deal with energy sector debts and other obligations. At the time, it believed it could afford to introduce the levy because fuel prices had fallen and the cedi was relatively stable,” he said.

According to Dr Krugu, the current economic environment paints a different picture, with the cedi coming under renewed pressure and fuel prices rising sharply.

“The question government must answer today is whether the conditions have changed. The cedi has come under pressure again, fuel prices are rising, and consumers are bearing the full weight of these increases,” he stated.

He argued that the government should not continue collecting the levy while consumers struggle with higher transport costs and rising prices of goods.

“You cannot tax the relief and then refuse to share the pain when consumers are struggling. Today, the very consumer who enjoyed lower fuel prices is facing rising costs, and government must respond,” Dr Krugu said.

He proposed that the government temporarily suspend the GH₵1 levy for two or three fuel pricing windows to assess market developments before deciding whether to reinstate it.

“The best option is for government to take off the one cedi levy, at least temporarily, for two or three pricing windows to observe what happens. That would demonstrate that government is prepared to share the burden with Ghanaians,” he said.

Dr Krugu further argued that the levy has far-reaching consequences beyond the fuel pump because transportation costs affect the prices of goods and services across the country.

“It is not just the one cedi you pay at the pump. You also pay for it through transport fares and in the prices of goods moved across the country. It is a levy that travels through the entire economy, and every Ghanaian ultimately bears the cost,” he explained.

He also pointed to changes in the fuel pricing mechanism introduced in June, saying consumers are now more directly exposed to fluctuations in international fuel prices.

“When global fuel prices rise, pump prices now increase accordingly. That means consumers are directly absorbing the effects of global market volatility, making it even more important for government to provide some relief,” he noted.

Dr Krugu maintained that suspending the levy would be a responsible response to current economic pressures.

“I think COMAC has a valid point. This is the time for government to share the pain with Ghanaians instead of maintaining a tax that adds to the burden on households and businesses,” he concluded.

ANAS/MA

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