Civil Society Organisations (CSOs) are urging the government to provide clear timelines for the recently introduced GH¢1 fuel levy, warning that without a defined duration, the charge could become a permanent financial burden on consumers.
The levy, which took effect on July 16, is the latest in a series of government-imposed charges aimed at supporting the energy sector.
However, CSOs are drawing parallels to previous levies—such as the Energy Sector Recovery Levy and the Energy Sector Levies Act (ESLA)—which, despite being introduced as temporary measures, remain in place years later.
At a policy forum ahead of the July 24 mid-year budget review, Abdul Karim Mohammed, Coordinator of the Economic Governance Platform, described the levy as an example of “lazy” revenue mobilisation, calling on the government to introduce a clear sunset clause.
“There’s no sunset clause. We have no specific timeline for how long the government intends to keep this levy,” he said. “Historically, it has become the easiest—and frankly, the laziest—way for governments to raise revenue.
“We saw it under President Kufuor with the toll recovery levy, and under President Mahama with the ESLA levy. Both are still being paid today.”
Mohammed also stressed the wider economic implications of fuel-related taxes. “When fuel prices go up, it affects the cost of goods and services across the board. We need clarity and assurance that this new levy won’t become another permanent feature,” he said.
The CSOs are expected to present a formal petition to the Ministry of Finance ahead of the mid-year budget presentation.