The African Institute of Energy Sustainability (AIES) is demanding the immediate withdrawal of the newly approved GH¢1 fuel levy, arguing that it unfairly burdens consumers and fails to address Ghana’s deep-rooted energy sector challenges.
In a statement signed by Executive Director Dr. Samiu Kwadwo Nuamah, AIES criticized the levy, popularly referred to as the “Dumsor Levy” as an economically flawed and socially inequitable measure that disproportionately affects the transportation sector, which consumes 77% of imported fuel.
“This approach is not only misplaced but threatens to worsen the cost of living for millions of Ghanaians”.
The institute warned that the levy would push fuel taxes to 32–33%, increasing prices at the pump and triggering a ripple effect across the economy.
AIES also highlighted the over US$2.5 billion energy sector debt, blaming take-or-pay contracts, high distribution losses, unrealistic tariffs, and forex volatility for the crisis rather than a lack of taxation.
“No amount of taxation on fuel can resolve these structural inefficiencies. Imposing new levies is simply treating symptoms, not curing the disease”.
AIES proposed alternative reforms, including merging ECG and NEDCo, unbundling distribution from retail operations, and establishing an Independent Power Administrator to oversee power procurement and planning.
