IMANI Africa, the Chamber of Petroleum Consumers (COPEC), the Institute for Energy Security (IES), and the Institute for Energy Strategy (INSTEPR) have jointly proposed a cumulative reduction of GH¢1.65 in the current petroleum price build-up.
This unified call follows a directive from President H.E. Mahama during the most recent cabinet meeting, which tasked the Ministries of Energy and Finance with reviewing existing taxes and margins to alleviate the economic burden on citizens.
The Civil Society Organizations (CSOs) in a joint press statement argued that while the government has contemplated a four-week intervention, a more robust two-month relief period is necessary to shield the public from the ongoing volatility in global energy markets.
“We propose a cumulative reduction of GHC1.65 from the current petroleum price build-up which should last for a period of TWO months instead of the FOUR weeks proposed by the government. We can then review the interventions again as they relate to the global world order.”
Joint press statement
The proposal seeks to harmonize the need for consumer relief with the operational integrity of the downstream petroleum subsector, ensuring that price drops do not lead to a “corrosive effect” on the industry’s sustainability.
By targeting specific margins and levies within the pricing structure, the CSOs believe the government can deliver a “substantial” reduction that reflects the current waste managed within the ecosystem.
The groups emphasize that the fiscal impact on the national budget would be mitigated by the significant windfall revenue the state is currently accruing from upstream crude production and exports, which have surged due to international price hikes.
Fiscal Buffers and the Upstream Windfall
The logic behind the GH¢1.65 relief rests on the assertion that the government is currently “winning” on the upstream side while the consumer loses at the pump.
With global crude prices hovering significantly above the 2026 budget benchmark of $76.22 per barrel peaking recently at nearly $120 the state is positioned to realize additional revenues exceeding GH¢8 billion.
This “upstream windfall” serves as a natural hedge, providing the Ministry of Finance with the requisite fiscal space to absorb the temporary loss of revenue from downstream levies without triggering a budget deficit.
By implementing this reduction, the government would not only be providing direct financial breathing room to households and the transport sector but would also be curbing the inflationary pressures that typically follow fuel price hikes.
This strategy ensures that the “windfall from the country’s upstream crude production” is effectively redistributed to stabilize the domestic economy.
The CSOs maintain that such a move is a matter of “tolerated waste” versus “national resource” management, suggesting that the state has the capacity to cushion the citizenry without jeopardizing long-term fiscal targets.
Rationalization and the Strategic Reserve Fund
Beyond the immediate price drop, the joint statement advocates for a “comprehensive rationalization” of the entire tax structure within the energy sector.
The aim is to permanently purge the price build-up of “nuisance” levies that have outlived their original legislative intent and currently act as a “drag on individual and national resources.”
Instead of a cycle of temporary fixes, the groups are pushing for a policy shift that prioritizes structural efficiency over reactive taxation, calling for a lean pricing model that survives beyond the current geopolitical tensions.
A centerpiece of this structural reform is the proposed creation of a Strategic Reserve Fund.
This fund would be financed by revisiting and repurposing specific levies to facilitate the “purchase and storage of real-time fuel.”
By maintaining a physical buffer, the state could “positively intervene in the domestic market” during periods of global supply shocks or price escalations.
This proactive approach aims to break the “perennial fuel price escalations” that have historically characterized the Ghanaian energy landscape, shifting the focus from tax collection to strategic energy security.
Revitalizing TOR for National Resilience
The final pillar of the CSOs’ demand centers on the “modernization and retooling” of the Tema Oil Refinery (TOR).
The coalition is calling on the President to honor his previous commitments by making “adequate investments” in the state-owned refinery to ensure it can process Ghana’s own crude liftings.
They argue that a functional TOR, working in tandem with private refineries, would drastically reduce the nation’s reliance on imported finished products, thereby eliminating many of the costs associated with the current import-heavy regime.
This call for refinery investment is framed as a critical component of the “green transition” and energy independence. By refining local crude domestically, the government can capture more value within the local economy, create jobs, and further lower the base price of fuel.
The CSOs conclude that the sustainability of the petroleum subsector depends on this transition from a purely distributive model to one backed by robust domestic production.
Ensuring that TOR is in a “much better position to refine the country’s crude” is presented as the ultimate solution to protecting Ghanaians from the “unforeseen” fluctuations of the global oil market.
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