COPEC Backs Fuel Tax Cuts, Says Some Levies Have Outlived Their Purpose
The Chamber of Petroleum Consumers (COPEC) has thrown its weight behind the government’s plan to scrap selected fuel taxes, arguing that several levies within Ghana’s petroleum pricing structure have become outdated and burdensome.
The move follows a directive by President John Dramani Mahama on April 9, instructing the Ministers of Finance and Energy to begin immediate consultations on removing specific taxes to ease pressure on consumers.
COPEC says the intervention, though timely, is long overdue, insisting that some of the taxes currently embedded in fuel pricing have outlived their relevance and continue to inflate pump prices unnecessarily.
The policy shift comes amid rising global crude oil prices, driven largely by escalating geopolitical tensions involving Iran, the United States and Israel, which have disrupted supply dynamics and pushed prices upward.
The ripple effects have been felt locally, with transport operators, businesses and households facing increasing costs tied to higher fuel prices.
Government’s decision is therefore being positioned as part of broader efforts to stabilise the economy and cushion consumers from external shocks.
Reacting to the development, Executive Secretary of COPEC, Duncan Amoah, said the Chamber is ready to engage the relevant ministries to ensure the policy delivers real and measurable relief.
He stressed that the ongoing discussions must go beyond temporary global pressures and address long-standing inefficiencies within the tax structure.
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“Some of these taxes have not only become a nuisance but have clearly outlived their purpose,” he said.
Mr. Amoah added that while the current geopolitical tensions may have triggered the urgency, the need to rationalise fuel taxes has existed for years and should now be treated as a structural reform.
COPEC maintains that a well-calibrated removal of selected taxes could significantly reduce fuel prices, improve economic activity, and restore some level of stability for consumers already grappling with the high cost of living.
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