A leading consumer advocacy group in Ghana is calling on government to reconsider its plan to impose a one-cedi fuel levy aimed at clearing the country’s mounting power sector debt.
The Chamber of Petroleum Consumers (COPEC) has described the decision as both unfair and unsustainable, warning that it would deepen the financial strain on ordinary Ghanaians already grappling with high living costs.
The levy, which adds one Ghana cedi to every litre of fuel purchased at the pump, was approved by President John Mahama and scheduled for implementation in June. However, following public outcry and resistance from industry players, the Ghana Revenue Authority has postponed its rollout to 16 June 2025.
Speaking to Joy Business, COPEC’s Executive Secretary, Duncan Amoah, sharply criticised the levy, describing it as a short-sighted fix that punishes consumers for mismanagement and inefficiencies in the power sector.
“It is as if the Electricity Company of Ghana (ECG) has money that they can misuse through corrupt practices, and then we, the public, are asked to pay for it,” Mr. Amoah said. “Ghanaians should not be made to pay for the consequences of poor financial governance.”
Mr. Amoah urged government to prioritise reforms within the sector, highlighting issues such as technical and financial losses, revenue leakages, and a lack of accountability within key power institutions.
“The power sector debt didn’t just appear out of nowhere,” he said. “It stems from serious challenges—poor revenue collection, transmission losses, and reckless procurement practices. These must be tackled at the root.”
COPEC is also pushing for greater transparency and consequences for corruption, particularly within ECG. Mr. Amoah called for disciplinary action against officials found to have contributed to financial losses through misconduct or procurement breaches.
“We must stop turning a blind eye to corruption in the power sector. If we want change, we need to hold people accountable,” he stated.
The controversy comes at a time when Ghana’s power sector is struggling with rising debts to Independent Power Producers and fuel suppliers, threatening electricity supply stability.
While government insists the levy is necessary to meet financial obligations and keep the lights on, COPEC and other critics say it’s the wrong approach, urging policymakers to adopt more innovative, transparent, and equitable solutions.
As the debate continues, the June 16 deadline looms, with industry watchers anticipating further dialogue between stakeholders and government to avert another public backlash.