Suspend taxes – NPP warns gov’t fuel intervention risks fresh energy sector debt crisis

The New Patriotic Party (NPP) has warned that Ghana's government's intervention in fuel pricing could lead to another debt crisis in the energy sector. The NPP claims the government is suspending statutory margins that support the petroleum downstream sector, while continuing to collect taxes and levies on petroleum products. According to the NPP, this arrangement has drained over GH¢500 million from the downstream sector each month, totaling GH¢2.076 billion over the past four months.

The NPP warns that prolonged withholding could lead to deferred maintenance, unpaid supplier bills, and increased borrowing, ultimately creating a new debt burden for the petroleum industry. The party argues that this situation mirrors the conditions that previously triggered Ghana's energy sector debt crisis. The NPP also points out that international crude oil and product prices have risen, and the Ghanaian cedi has weakened, increasing pressure on pump prices.

The Committee recommends that the government suspend taxes and levies on fuel instead of withholding the statutory margins that maintain the downstream sector. They suggest that the current intervention is becoming increasingly costly while providing diminishing relief to consumers. The NPP calls on the government to restore the suspended statutory margins, disclose the full cost of the fuel intervention, and suspend taxes and levies on petroleum products during the crisis.