The Executive Director of the Centre for Environment and Sustainable Energy, Benjamin Nsiah, has expressed strong reservations about the recently approved GHȼ1 fuel levy, calling it regressive and counterproductive. In a recent interview, Nsiah questioned the government’s reliance on petroleum taxes to bridge financial gaps in the energy sector, arguing that this approach has proven ineffective.
While the levy is expected to generate GHȼ5.7 billion to support energy sector obligations, Nsiah believes it will only add to the burden on already strained consumers. He cited the Energy Sector Levies Act (ESLA) and Energy Sector Recovery Levy as examples of previous fiscal interventions that failed to address the sector’s structural inefficiencies.
Nsiah emphasized that the focus should shift from revenue mobilization to fiscal discipline and operational efficiency. “The problem is not revenue; it’s management,” he stressed. He warned that without reform, consumers will continue to bear the brunt of repeated fuel levies, which have been in place since 2016 with little visible impact on energy sector debts.
The controversy follows Parliament’s passage of the Energy Sector Levies (Amendment) Bill, 2025, which authorizes the GHȼ1 increase in petroleum product levies. Despite the Finance Minister’s assurance that the levy won’t raise ex-pump fuel prices, Nsiah and others remain skeptical. The Minority Caucus walked out during the approval process, citing concerns about the levy’s impact on consumers. Nsiah insists that real reform requires addressing inefficiencies along the energy value chain, rather than relying on consumers as a “stopgap funding mechanism.”
