Audio By Carbonatix
Energy analyst and Executive Director of the Institute for Energy Policies and Research, Kwadwo Poku, says the government currently has limited capacity to ease the burden of rising fuel prices, citing IMF restrictions and a significant revenue shortfall.
Speaking on The AM Show, Mr Poku said while public frustration is understandable, the fiscal space required to intervene simply does not exist.
“They need the revenue more than ever before. So they can’t remove any taxes,” he said.
According to him, the Price Stabilisation and Recovery Levy, designed to cushion consumers during price hikes, cannot be reduced under Ghana’s IMF-supported programme, as it is treated as part of government revenue.
He further revealed that as of November 2025, the government had mobilised GH₵187 billion out of a GH₵220 billion revenue target, with projections suggesting the final figure would fall short.
In addition, he said the government planned to raise GH₵40 billion through Treasury bills but managed only GH₵10 billion, leaving a GH₵30 billion financing gap.
Mr Poku noted that although some taxes, including the E-levy, have been scrapped in recent reforms, the bulk of levies embedded in fuel pricing remain intact due to fiscal pressures.
He added that final revenue figures for 2025 are expected after the Bank of Ghana releases its first-quarter data, which will provide a clearer picture of the country’s financial position.
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