ASEC in a statement on June 16, 2025 argued that global energy markets are inherently volatile, hence short-term fluctuations should not inform permanent tax decisions like the GHC1 fuel levy.

The Energy Think Tank explained that the sharp rise in global process of Oil due to the Israel-Iran conflict, highlight the risks of basing long-term fiscal policy on temporary gains.

ASEC cautioned that introducing the fuel levy amid the recent reduction in fuel prices due to cedi appreciation was a “premature move”.

“Global crude prices have risen to $74–$75 per barrel since mid-June, driven largely by geopolitical tensions. This reinforces our position that external shocks can quickly reverse any perceived “relief” in fuel pricing, rendering the proposed levy ineffective, unsustainable, but also damaging,” ASEC maintained.

According to the Director of Research and Innovation at ASEC, Dr. Elvis Twumasi, its analysis indicates that pump prices are set to increase, and any reduction this week is temporary.

ASEC argued that if the GHC 1 fuel levy is implemented, fuel prices from July will be approaching GHC1due to the pressures from the international market.

Government goodwill from recent stabilisation efforts may be undermined by rising public frustration.

ASEC called for a more strategic, long-term approach rather than just a postponement of the energy levy.

“Rather than shifting the burden onto consumers, government policy should prioritise structural reforms, strategic investments, and diversified revenue channels within the energy sector.

Scrap the levy entirely. In an era of global uncertainty, policies must be flexible, evidence based, and citizen-focused, ASEC noted.

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