The Africa Centre for Energy Policy (ACEP) has cautioned that any move to scrap the controversial “Dumsor levy” could ultimately do more harm than good, warning that such a decision may shift financial pressure onto ordinary Ghanaians rather than provide the relief many expect.
The levy, introduced to help stabilise Ghana’s energy sector and address legacy debts, has long been the subject of public debate. While some argue that removing it would ease the cost-of-living burden, ACEP insists the reality is more complex.
According to ACEP’s Executive Director, Benjamin Boakye, funds generated from the levy play a critical role in servicing power sector debts, maintaining infrastructure, and ensuring a stable electricity supply.
The think tank argues that eliminating the levy without a clear and sustainable alternative revenue stream would create a financing gap that the government would still need to fill.
Speaking in an interview on Citi FM on Wednesday, April 8, 2026, Boakye stressed that the GH¢1-per-litre charge cannot simply be withdrawn without consequences for the broader economy
“If you take that one cedi out now, then there has to be some fiscal space created somewhere else, whether you suspend road construction, the building of schools, or even salaries…There will be some debt created for the same consumer to pay in other ways,” he said.
Boakye further noted that Ghana’s vulnerability to external shocks remains a concern, but argued that the deeper issue lies in how petroleum taxes are structured and utilised.
He revealed that ACEP estimates more than GH¢20 billion has been raised over the past decade through levies on petroleum products for the energy sector. According to him, a portion of these funds could have been channelled into road infrastructure to reduce fuel consumption and ease pressure on consumers.
The development comes after President John Dramani Mahama convened an emergency cabinet meeting to consider urgent measures aimed at shielding Ghanaians from rising fuel prices linked to tensions in the Middle East.
Addressing participants on the second day of the Kwahu Business Forum on Saturday, April 4, 2026, Mahama said discussions would focus on practical interventions to mitigate the impact of increasing petroleum costs
“I have called for this emergency cabinet meeting to decide on specific measures we can take to cushion petroleum prices while we hope the conflict comes to an end. There are adjustments we can make, particularly in the margins, to help maintain relatively stable prices as we pray for the war to cease,” he stated.
He added that the government remains committed to easing economic pressure on citizens, noting that the cabinet will examine components of the fuel price build-up to identify possible areas for intervention.
