Fuel Levy Will Inflict Undue Hardship on Ghanaians – Minority

The Minority in Parliament has sharply criticized the government’s newly passed energy sector levy, describing it as a “predatory tax” that will inflict severe economic hardship on already burdened Ghanaians.

In a statement issued Wednesday, the Minority Caucus labeled the one-cedi per litre fuel levy as “callous, insensitive, and a midnight robbery,” arguing that it will further erode the purchasing power of citizens, inflate prices across sectors, and drain over GH¢475 million from Ghanaians’ pockets every month.

“This one-cedi increase is not a minor inconvenience; it’s a significant blow to household budgets and businesses nationwide,” the statement read.

“Fuel is a fundamental input across all sectors, and this tax will ripple through the economy, exacerbating inflation.”

The minority accused the government of breaching its own earlier promises.

In January, the Finance Minister had pledged that “tariffs will not be used to raise revenue” or reward the inefficiencies of the Electricity Company of Ghana (ECG).

According to the Minority, this new levy represents a complete reversal of that assurance, without any evidence that inefficiencies in ECG have been addressed.

“What concrete steps have been taken to fix ECG?” the Caucus questioned. “The government’s silence on this critical issue is deafening.”

The Caucus further challenged the justification that lower global fuel prices warranted the introduction of the tax, calling it “simplistic and misleading.”

They pointed to the volatility of the international oil market and asked what the government’s plan would be if prices began to rise again.

“This is not leadership. It’s economic betrayal,” the statement said.

The levy, they warned, was pushed through Parliament under a certificate of urgency “with the speed of light,” denying meaningful debate and transparency.

The process, they said, “epitomizes bad governance and contempt for the people.”

Adding to the frustration, the Minority highlighted recent increases in electricity (14%) and water tariffs (3%), as well as the recent persuasion of commercial drivers to reduce transport fares — only to be hit later with the fuel tax.

“This levy is a stab in the back to drivers and the Ghanaian people,” they noted. “It follows a pattern of broken promises, dishonesty, and manipulation.”

The Minority also condemned what they called a glaring double standard: while ordinary Ghanaians are being taxed, there has been no move to cut perks such as free fuel for government appointees.

“If the government genuinely cared, they would start by cutting their own luxuries,” the statement said. “This is not shared sacrifice. This is selective suffering.”

The Minority is calling for the immediate withdrawal or reduction of the levy, urging the government to instead focus on transparent and efficient reforms in the energy sector.

They also announced plans to mobilize Ghanaians for street protests against what they describe as a “wicked” policy.

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