The Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, has defended calls for a GH¢1.65 reduction in fuel prices, insisting the proposal is both measured and designed to balance consumer relief with government sustainability.
Speaking on JoyNews’ The Pulse, Mr Amoah explained that the proposal was the outcome of consultations among key policy groups within the energy sector.
According to him, the recommendation seeks to ensure that while consumers receive some relief, critical government revenues tied to petroleum taxes are not entirely eroded.
“We said take off a little bit for everybody so that cumulatively you can give the consumer something, but government should also not suffer a collateral consequence,” he stated.
His comments come amid a joint push by policy think tanks, including IMANI Africa and the Institute for Energy Security, for a reduction in fuel prices by GH¢1.65 per litre.
However, Professor of Finance at Andrews University, Williams Kwasi Peprah, has cautioned the government against fully adopting the GH¢1.65 petroleum price reduction demanded by the CSOs, describing the request as “on the high side” for the national treasury.
Mr Amoah explained that the proposed reduction was carefully structured by adjusting portions of various components within the petroleum price build-up, rather than removing specific taxes entirely.
He noted that key levies such as the Unified Petroleum Pricing Fund (UPPF), margins for transporters, and other sector-related charges were all reviewed to ensure that each stakeholder absorbs part of the burden.
“If you are not careful, some taxes will be taken off entirely and others left, and that could affect critical services those taxes are meant to fund,” he cautioned.
He stressed that the approach allows for partial relief across multiple components, ensuring that essential services such as road maintenance and fuel distribution are not disrupted.
However, Mr Amoah admitted that the proposed reduction alone would not fully resolve the challenges facing the sector while pointing to broader structural issues within Ghana’s energy sector.
He called for more comprehensive long-term interventions, including significant investment in refining capacity to improve efficiency and reduce losses.
According to him, upgrading the country’s refinery infrastructure would help maximise output from crude oil and reduce dependence on imports.
Mr Amoah also advocated for the development of strategic fuel reserves to cushion the country against global shocks, particularly in times of geopolitical tension affecting oil supply.
“Something more comprehensive would need to be done beyond just taking out some of these taxes for the next four weeks,” he added.
He further warned that without government intervention, fuel prices could have risen even higher, citing global market pressures and the cedi’s recent depreciation against the dollar.
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