The Ghanaian government is currently facing intense pressure from various stakeholders to address surging petroleum product prices, which are significantly impacting consumers and businesses across the nation. Economists, energy policy experts, and transport unions are advocating for immediate government intervention, primarily through the reduction or removal of taxes and levies on fuel. This widespread call comes amid a backdrop of escalating global oil prices, geopolitical tensions in the Middle East and Eastern Europe, and local economic challenges including cedi depreciation.

Professor Godfred Bokpin, an economist at the University of Ghana, has strongly supported the calls to reduce petroleum taxes. He argues that the current tax burden prevents Ghanaians from fully benefiting from any strengthening of the cedi and exacerbates inefficiencies in fuel price build-up. While initially backing the one-cedi fuel levy introduced last year due to exchange rate pressures, Prof. Bokpin now believes current economic conditions warrant a reassessment, suggesting that reducing or removing some levies could cushion consumers against external shocks and stabilize transport and commodity prices without negatively affecting the national budget. He explains that budgets are based on assumptions that allow flexibility for government to respond to changing economic conditions, thereby making such adjustments feasible.

The African Centre for Energy Policy (ACEP), through its Executive Director Benjamin Boagye, has also been a vocal proponent of tax reductions. ACEP specifically calls for the suspension of certain petroleum levies, including the Bulk Oil Storage and Transportation Company Limited (BOST) levy, arguing that BOST operates within a commercial framework supported by state funding and that consumers should not bear additional levies when struggling. Boagye questions the rationale for a BOST margin when the state has provided infrastructure, suggesting its suspension could provide immediate relief while broader policy instruments for product distribution are considered.

Adding to the chorus, the Minority in Parliament, represented by Collins Adomako-Mensah, Deputy Ranking Member of Parliament’s Energy Committee, has urged the government to swiftly remove the GH₵1 fuel levy. Speaking on April 1, 2026, Adomako-Mensah highlighted the tangible impact on household budgets, noting that many fuel buyers now pay around GH₵200 compared to GH₵150 previously, leading to reduced disposable incomes. He warned that rising transport costs from higher diesel prices could further fuel inflation and stressed that decisive action, similar to measures taken in countries like Namibia and India, is needed.

The Ghana Private Road Transport Union (GPRTU) has issued a two-day ultimatum to the government: scrap taxes on petroleum products or face pressure to increase transport fares nationwide. Deputy PRO Samuel Amoah explained on the AM Show that transport operators are battling a multi-layered cost crisis extending beyond rising global crude prices. He cited steep increases in spare parts prices, higher quality insurance premiums, and escalated DVLA renewal fees and penalties for late insurance renewal, which have more than doubled. For instance, commercial bus insurance premiums have jumped significantly, with printer buses seeing a rise from 933 cedis to 1,194 cedis. The GPRTU noted that petrol prices have jumped from GHS 10.46 to GHS 13.30 per litre, and diesel from GHS 11.42 to GHS 17.10 within just a month, driven by global crude oil prices climbing from $86.2 to $109.23 per barrel, and a marginal cedi depreciation from GHS 10.91 to GHS 11.05 per dollar.

In response to these calls, Government Spokesperson Felix Kwakye Ofosu indicated that the government may review fuel taxes and levies if rising global oil prices place excessive pressure on consumers. He clarified that while international market prices are beyond government control, authorities can adjust domestic tax components to cushion the impact. He stated that such intervention would be considered if external shocks, like prolonged conflict in the Middle East, lead to sustained increases. President Mahama has also announced a planned review of taxes on petroleum products, leading the GPRTU to state it will delay any announcement of new transport fares until these promised tax cuts are confirmed to have taken effect at the pump. The union emphasized that it needs to see the feasibility and impact on pump prices before making final decisions, acknowledging the difficulty of reversing fare increments once announced.

However, not all voices advocate for immediate tax removal. Joe Jackson, Chief Executive Officer of Dalex Finance, has cautioned the government against rushing to remove fuel taxes. Speaking on JoyNews on April 1, Mr. Jackson questioned the long-term implications, asking, “Are we going to remove this forever? What happens to our oil sector debt? What happens to the revenues that this contributes to the public purse?” He stressed that decisions must be made with careful consideration, warning against hasty policy reversals given ongoing global disruptions and the unlikelihood of prices dropping while conflicts persist. He advocated for caution, suggesting that “maybe no adjustment should be done” until the situation becomes clearer.

Beyond immediate tax relief, Benjamin Boagye of ACEP has also called for strategic investment in Ghana’s energy security through incentivizing in-country fuel storage and strategic reserves. He highlighted that while Ghana might appear