The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, is calling on government to urgently cut portions of fuel taxes, arguing that a proposed reduction of about GH¢1.65 per litre would offer immediate relief to consumers while still allowing the state to retain some revenue.

Speaking on JoyNews on April 15, Mr Amoah described the proposal as “about the fairest any institution can get with government,” insisting that it strikes a balance between easing the burden on Ghanaians and protecting public finances.

“You are not asking government to take off all taxes but portions of existing taxes such that government retains part of the taxes. The consumer also benefits,” he explained.

His comments come at a time when global oil prices remain elevated despite a temporary ceasefire between the United States and Iran, which has failed to stabilise supply. A naval blockade in the Strait of Hormuz has left thousands of vessels stranded, disrupting nearly 20% of global oil flows and keeping crude prices volatile.

Against this backdrop, COPEC and other civil society organisations are proposing targeted reductions across several fuel-related levies. These include halving the Unified Petroleum Price Fund (UPPF) from 90 pesewas to 45 pesewas, cutting the Special Petroleum Tax from 46 pesewas to 23 pesewas, and scrapping the Price Stabilisation and Recovery Levy entirely.

Additional proposals involve reducing the road fund levy by half for a limited period of four to eight weeks, trimming the BOST margin from 12 pesewas to 6 pesewas, and lowering the fuel marking margin from 9 pesewas to 4 pesewas.

Mr Amoah said the combined effect of these measures would deliver a reduction of about GH¢1.65 per litre, describing it as a “win-win” outcome.

“The consumer gets something, the government still retains some of the revenue that it sets out to get from these taxes,” he noted.

He further argued that while government may lose some revenue downstream, it stands to gain significantly from higher crude oil prices on the international market. Ghana, as an oil-producing country, is expected to earn more from exports due to the surge in prices.

“At this point, government is going to reckon about 30% more for every lifting that we do… whatever taxes or royalties you may get at the end of the year will be higher because prices are high,” he said, referencing the jump in crude prices from about $68 per barrel before the conflict to nearly $100.

Mr Amoah stressed that the proposed intervention is not new, noting that similar tax adjustments have been implemented in the past during periods of price shocks to cushion consumers.

He warned that failure to act could have wider economic consequences, as rising fuel prices typically trigger increases in transport fares, goods and services, and even government contract costs.

“Once fuel prices are allowed to escalate, the cost of everything… also escalates. Workers come back to demand more money that the government itself already does not have,” he cautioned.

According to him, the broader economy stands to benefit most from the proposed tax relief, as it would help stabilise prices and reduce inflationary pressures.

“This intervention is not only timely but a necessity towards balancing the economy,” Mr Amoah added.