CSOs urge gov’t to cut fuel taxes by GH¢1.65 for 2 months, propose long-term reforms

• CSOs are calling for a GH¢1.65 fuel tax cut for two (2) months to ease rising costs.

• They say the move is affordable due to expected oil revenue gains.

• They also propose long-term fixes, including tax reforms, fuel reserves, and investment in local refining.

Civil society organisations have called on government to implement a temporary reduction of GH¢1.65 in fuel taxes and margins for a period of two (2) months, arguing that a more substantial intervention is needed to cushion Ghanaians amid rising petroleum prices.

The proposal was put forward by IMANI Africa, COPEC Ghana, INSTEPR and the Institute for Energy Security (IES), following President John Dramani Mahama’s directive to the Ministries of Finance and Energy to review the petroleum pricing structure and recommend measures to ease the burden on consumers.

In a joint statement on April 14, the groups noted that while they support government’s intention to provide short-term relief, the scale and duration of the intervention should be expanded beyond the initially proposed four (4) weeks.

“We propose a cumulative reduction of GH¢1.65 from the current petroleum price build-up which should last for a period of two months instead of the four weeks proposed by the government,” the statement said.

ALSO READ: Asiedu Nketia still leading 2028 NDC presidential race, latest Global InfoAnalytics poll reveals

According to the organisations, the proposed reduction is designed to provide meaningful relief without undermining the sustainability of the downstream petroleum sector.

They emphasised that the intervention would not place excessive strain on public finances, noting that government is likely to benefit from increased revenue inflows from crude oil production and exports within the same period.

“This recommendation should not overburden the country’s fiscal space as we are also minded by the fact that government will be getting a significant windfall from the country’s upstream crude production and exports within this given period,” they added.

ALSO READ: Mother of late Berekum Chelsea player narrates how she heard about her son’s tragic death (video)

Beyond the immediate tax relief, the groups outlined a series of long-term reforms aimed at addressing persistent fuel price volatility in Ghana.

Key among the proposals is a comprehensive rationalisation of existing taxes, levies and margins within the petroleum pricing structure, with the aim of permanently eliminating those considered inefficient or burdensome to consumers and the economy.

The organisations also called for the establishment of a Strategic Reserve Fund to enable government to purchase and store fuel during periods of lower global prices, creating a buffer that can be deployed to stabilise the domestic market during future shocks.

ALSO READ: 78% of NDC grassroots concerned over lack of job opportunities, Global InfoAnalytics poll reveals

In addition, they urged renewed investment in refining and storage infrastructure, particularly the Tema Oil Refinery (TOR) and the Bulk Oil Storage and Transportation Company (BOST), to strengthen Ghana’s capacity to process and store crude oil locally.

They noted that improving local refining capacity would reduce reliance on imported refined products and enhance energy security over the long term.

The call by the civil society groups comes at a time of heightened global uncertainty in the oil market, with geopolitical tensions and supply disruptions continuing to influence fuel prices across many economies, including Ghana.