Dr. Eric Bempong, a lecturer at KAAF University, has called on the government to reconsider its decision to impose the newly passed Energy Levy on fuel, suggesting instead that the tax be directed at products like tobacco and alcoholic beverages.
Speaking on Oyerepa Breakfast Time with host Akua Asieduwaa, Dr. Bempong expressed concern over the financial burden the levy would place on ordinary Ghanaians.
His comments follow the passage of the Energy Sector Levy (Amendment) Bill, 2025, in the early hours of June 4, which saw a dramatic walkout by the Minority in Parliament in protest.
The new legislation introduces a GHS 1 charge on every litre of fuel purchased, a move the government says is necessary to help address the country’s growing energy sector debt, currently pegged at US$3.1 billion as of March 2025.
However, Dr. Bempong believes the approach is misguided.
“GHS 1 per litre of fuel is too much for Ghanaians,” he said, adding that, “Fuel is a necessity, and its demand is inelastic. Increasing its price directly impacts transport fares, food prices, and the general cost of living.”
He argued that the Energy Levy should instead be imposed on goods like alcohol and tobacco, which are not essential and have well-documented negative effects on public health.
“They drink, they smoke—these things harm our health. Taxing them would not only raise revenue but also help reduce their consumption,” he noted.
Dr. Bempong further urged President Mahama and his administration to reconsider the levy and explore alternative ways to raise funds without overburdening the average Ghanaian.
“There are other areas where demand is less sensitive to price, and taxing those would have a lesser impact on daily life. Repealing this fuel levy could help improve the standard of living in the country,” he added.
His remarks add to the growing chorus of opposition against the Energy Levy, which has been widely criticised by Ghanaians and the opposition, the New Patriotic Party(NPP).
Source: Oyerepafmonline.com/Joseph Marfo
