Energy analyst Kwadwo Poku, has categorically stated that government is unlikely to remove taxes on fuel despite mounting public pressure, as it urgently needs revenue to stabilize the economy.
Speaking on The AM Show, the Executive Director of the Institute for Energy Policies and Research stressed that current economic conditions leave little room for any form of relief on fuel prices.
“They need the revenue more than ever before. So, they can’t remove any taxes,” he stated.
He explained that although consumers are feeling the strain of rising fuel prices, government’s hands are effectively tied due to commitments under the IMF supported programme and a widening revenue gap.
He noted that the Price Stabilization and Recovery Levy, which is intended to cushion consumers during fuel price hikes, cannot be reduced because it is classified as a key source of government revenue under the IMF arrangement.
Providing insight into the country’s fiscal situation, Mr. Poku disclosed that as of November 2025, government had generated GH₵187 billion out of a projected GH₵220 billion revenue target, with expectations of a shortfall by year end.
He further revealed that attempts to raise GH₵40 billion through Treasury bills yielded only GH₵10 billion, leaving a significant GH₵30 billion financing gap.
While acknowledging that some taxes, such as the E-levy, have been scrapped in recent reforms, Mr. Poku emphasised that most levies within the fuel pricing structure remain untouched due to the pressing need for revenue.
He added that a clearer picture of Ghana’s fiscal performance for 2025 will emerge once the Bank of Ghana releases its first-quarter data.
Source: Myrbytfmonline.com/Tamara Owusu Ansah
