A coalition of four policy and energy-focused civil society organisations has proposed a temporary reduction of GH¢1.65 in petroleum product prices to ease the financial burden on Ghanaians amid prevailing economic uncertainties.
The proposal, jointly advanced by IMANI Africa, COPEC Ghana, the Institute for Statistical, Social and Economic Research Policy (INSTEPR), and the Institute of Energy Strategies (IES), follows a directive by President John Dramani Mahama for a review of the petroleum price build-up.
At the most recent Cabinet meeting, the President instructed the Ministry of Energy and the Ministry of Finance to assess current fuel pricing components, including taxes, margins and levies, with a view to recommending possible reductions to provide temporary relief to consumers.
In response, the CSOs said their recommendation is the result of extensive consultations, balancing the need for meaningful consumer relief with the sustainability of the downstream petroleum sector.
“While some of us in the civil society space believe that the relief should be substantial given the level of tolerated waste across the downstream petroleum ecosystem, it must nevertheless not lead to a sudden corrosive effect on operations and sustainability of the petroleum subsector,” the groups noted.
The organisations are proposing a cumulative GH¢1.65 reduction in the current fuel price build-up, to be implemented over a two‑month period, rather than the four-week duration earlier proposed by government.
According to them, the two‑month window would allow for adequate monitoring and a more informed review of global market conditions before any further intervention is considered.
They also stressed that the proposal would not unduly strain Ghana’s fiscal space, pointing out that government is expected to benefit from significant windfall revenues from upstream crude oil production and exports within the same period.
Beyond the temporary relief, the CSOs urged government to pursue long-term structural solutions to address Ghana’s perennial fuel price escalations.
Among their key recommendations is a comprehensive rationalisation of all existing petroleum taxes, levies and margins, with the aim of permanently eliminating those deemed burdensome to households and the broader economy.
They also proposed the creation of a Strategic Petroleum Reserve Fund, financed from selected levies identified for review.
The fund, they said, would enable government to purchase and store fuel during favourable market conditions and intervene effectively in the domestic market during unforeseen supply shocks or price surges.
The groups further called for renewed commitment to the modernisation and retooling of Ghana’s refining and storage infrastructure, particularly the Tema Oil Refinery (TOR) and facilities managed by the Bulk Oil Storage and Transportation Company (BOST).
According to the CSOs, adequate investment would position TOR—working alongside other refineries—to refine a greater portion of Ghana’s crude oil liftings locally, while expanded BOST infrastructure would improve national fuel storage capacity and supply security.
They noted that these commitments align with assurances previously given by the President during engagements with civil society organisations.
The statement was jointly signed by IMANI Africa, COPEC Ghana, INSTEPR, and IES.
Source: businesspostonline
