A coalition of civil society and energy policy organizations—IMANI Africa, COPEC Ghana, INSTEPR, and Institute for Energy Security—has proposed a reduction of GH¢1.65 in petroleum product prices to provide temporary relief to Ghanaians.
The proposal follows a directive by President John Dramani Mahama at a recent Cabinet meeting, tasking the Ministries of Energy and Finance to review the petroleum price build-up and recommend possible cuts in taxes, levies, and margins.
In a joint statement, the groups noted that while there is a strong case for substantial relief due to inefficiencies and waste within the downstream petroleum sector, any intervention must be carefully calibrated to avoid undermining the sustainability of the industry.
After consultations, the organizations recommended a cumulative reduction of GH¢1.65 from the current fuel price structure. They proposed that the relief should be implemented over a two-month period, rather than the four weeks reportedly under consideration by government, to ensure a more meaningful impact on consumers.
According to the coalition, the proposed measures would not place excessive strain on the country’s fiscal space. They argued that anticipated windfalls from Ghana’s upstream crude oil production and exports could help offset the revenue impact during the intervention period.
Beyond the immediate price relief, the groups called for broader reforms to address persistent fuel price volatility. They urged government to undertake a comprehensive rationalisation of existing taxes, levies, and margins, with the aim of permanently removing those that place undue burden on citizens and the economy.
The coalition also recommended the establishment of a Strategic Reserve Fund. Such a fund, they explained, could be financed through selected levies and used to procure and store fuel reserves, enabling government to intervene effectively in the domestic market during periods of global price shocks.
Additionally, the groups stressed the need for significant investment in refining and storage infrastructure. They called for the modernization and retooling of the Tema Oil Refinery and the Bulk Oil Storage and Transportation Company (BOST) to enhance local refining capacity and improve fuel storage capabilities.
The recommendations, the statement noted, align with commitments made by the President during his recent engagement with civil society organizations.
The groups expressed hope that government would give due consideration to their proposals as part of efforts to cushion citizens against rising fuel costs and broader economic challenges.
Story By: Eric Boateng
