Press Release: Global oil price surge validates ASEC's caution on GHC 1 fuel levy

The Africa Sustainable Energy Centre (ASEC) reiterates its opposition to the Ghana government’s proposed GHC 1 fuel levy. Recent developments in the global oil market highlight the risks of basing long-term fiscal policy on temporary gains.

Earlier this year, ASEC cautioned that introducing the levy amid what appeared to be a dip in fuel prices due to cedi appreciation was a premature move. We argued that global energy markets are inherently volatile and that such short-term fluctuations should not inform permanent tax decisions.

Global crude prices have risen to $74–$75 per barrel since mid-June, driven largely by geopolitical tensions. This reinforces our position that external shocks can quickly reverse any perceived “relief” in fuel pricing, rendering the proposed levy ineffective, unsustainable, but also damaging.

ASEC’s analysis indicates that pump prices are set to increase, and any reduction this week is temporary. If the GHC 1 policy is implemented, prices from July will be approaching GHC 15 due to the pressures from the international market\

Government goodwill from recent stabilisation efforts may be undermined by rising public frustration. We urge a more strategic, long-term approach rather than just a postponement of the energy levy. Rather than shifting the burden onto consumers, government policy should prioritise structural reforms, strategic investments, and diversified revenue channels within the energy sector.

ASEC’s Position:

Scrap the levy entirely. In an era of global uncertainty, policies must be flexible, evidence-based, and citizen-focused.