Gov’t risks ‘shooting itself in the foot’ with fuel tax – COPEC

The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has cautioned the government against introducing new levies on petroleum products, warning that such a move could derail the economic stabilization efforts currently underway.

Speaking on Citi Eyewitness News on Tuesday, June 3, in response to the Energy Sector Levy Amendment Bill laid before Parliament by the Finance Minister, Mr. Amoah described the proposed GH¢1 increase in fuel levies as potentially counterproductive.

“But to say that we should go and collect new taxes on petroleum products at this point, when the same government seems to have done everything right, I think it will be shooting itself in the foot and will be adding unnecessary pressure. So clearly, further thinking should go into this,” he said.

Duncan Amoah cautioned that introducing new taxes at this point could worsen the burden on Ghanaians, especially when deeper issues affecting the energy sector remain unresolved.

“For me, whatever we need to do to stop the bleeding of the power sector, I think that should be our key focus at this point. You cannot continue to pour water in a leaking bucket, so we need to resolve the issues crippling the power sector,” he said.

Amoah emphasised that addressing the root causes of inefficiencies in the energy sector is critical before raising funds from consumers.

“The earlier we put a stop to the bleeding of that sector, the better. I think the government should go and think through this appropriately because it could create a whole mess for the country itself,” he warned.

Meanwhile, Finance Minister Dr. Cassiel Ato Forson, while laying the bill before Parliament, explained that a minimum of $3.7 billion is required to clear energy sector debts, which currently stand at GHS3.1 billion. An additional $1.2 billion is needed to procure fuel for thermal power generation throughout 2025.

He assured Parliament that the proposed levy’s impact would be mitigated by the recent gains made by the local currency.

Source: CNR