A coalition of opposition political parties is preparing to stage a protest in the Ashanti Regional capital, Kumasi over the newly introduced GHC1 per litre fuel levy, which the group describes as “obnoxious and wicked.”
The protest, being led by the Coalition of Political Parties (COPP), is in direct opposition to the Mahama administration’s decision to impose the levy, which government says will support efforts to stabilise the country’s power sector and address recurring electricity challenges, popularly known as Dumsor.
Henry Nana Boakye, the National Organiser of the New Patriotic Party (NPP), confirmed the demonstration in a Facebook post, in what appears to be move is a necessary response to what he called the government’s insensitivity to the plight of ordinary Ghanaians.
Levy unjustified
Meanwhile, the Institute of Economic Research and Public Policy (IERPP) has sharply criticised the Mahama administration over its decision to introduce a new tax on fuel, describing the move as regressive and a blow to struggling citizens.
IERPP argues that the tax will disproportionately affect low-income Ghanaians who spend a higher percentage of their income on fuel and transportation.
“This tax is not like the electronic levy (E-Levy), where people could avoid charges by using cash. Everyone, rich or poor, is affected by fuel taxes. And as history has shown, any increase in fuel prices trickles down into the cost of living,” the think tank stated in a position note released on Tuesday.
The group also pointed to the recent 14.75% hike in electricity tariffs on 3 May 2025, arguing that Ghanaians have already sacrificed enough in the name of fixing the energy sector.
The IERPP further accused the Mahama administration of forcing Ghanaians to “pay for the incompetence” of the current leadership.
Defence
In a strong defence, the Energy Minister John Jinapor says the new GH¢1.00 fuel levy is expected to generate between GH¢5 billion and GH¢6 billion to help procure liquid fuel and reduce energy sector debt.
However, he admits the revenue will cover only about 60% of what’s needed, and the Finance Ministry will still need to provide additional support.
“This amount, if you look at the object clearly, we talked about the debt that we have and how unsustainable the debt is,” Jinapor explained during an interview on Accra-based Citi FM.
He added: “But when you look at the real object, it is to help us first to procure liquid fuel, and within the veil of the liquid fuel, it will be about GH¢1.2 billion. The government said that this GH¢1 would give us about GH¢5–6 billion, which is about 60% of what we require.”
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