The Executive Director of the Centre for Environment and Sustainable Energy, Benjamin Nsiah, has sharply criticised the government’s newly-approved GH¢1 fuel levy, describing it as a regressive tax measure that unfairly burdens consumers and fails to address the root causes of Ghana’s persistent energy sector challenges.

In an interview on Citi FM, as monitored by GhanaWeb Business, Nsiah questioned the rationale behind the government’s continued dependence on petroleum taxes to close financial gaps within the energy sector.

He argued that the fuel levy, projected to generate GH¢5.7 billion in revenue, is yet another short-term intervention that sidesteps long-needed structural reforms.

“This approach is not only tired but unfair. We’ve seen this playbook before with ESLA and the Energy Sector Recovery Levy. None of them have offered lasting solutions. It’s not about collecting more; it’s about managing what’s already collected,” he said.

He added that since the introduction of fuel-based levies in 2016, consumers have borne a disproportionate share of the financial burden, yet energy sector arrears have persisted with little visible improvement in operational performance.

He asserts that the problem lies not in revenue shortfalls but in mismanagement and inefficiencies along the energy value chain from procurement to transmission and distribution.

“For the minister to say this won’t burden consumers is simply not accurate. The consumer has carried this burden for years, and without reform, this trend will continue," he stated.

He further called for a strategic shift from revenue mobilisation to fiscal discipline and operational efficiency, warning that Ghana risks prolonging its energy crisis if consumer-based levies continue to be used as a stopgap funding mechanism.

SP/AE

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