Cutting fuel taxes won’t solve current price challenges - COPEC

The Executive Secretary of the Chamber of Petroleum Consumers, Duncan Amoah, has warned that cutting fuel taxes will not address the current challenges facing Ghana’s petroleum sector.

Speaking on Asempa FM’s Ekosii Sen show, Mr. Amoah attributed the rise in fuel prices to global factors, including ongoing conflicts that have disrupted supply chains and driven up crude oil costs. He cautioned that fuel stocks are becoming increasingly scarce, with prices potentially reaching as high as $200 per barrel if the situation continues.

While he acknowledged that removing taxes could offer short-term relief, Mr. Amoah stressed that such a move could create long-term problems if supply constraints remain unaddressed. He urged the government to adopt strategic planning measures, including building sufficient fuel reserves, noting that earlier opportunities to prepare were missed when global tensions first emerged.

He also highlighted the impact on transportation, warning that higher fuel costs are likely to push transport fares upward.

“Fuel prices are rising due to multiple global factors. The ongoing conflict is making it increasingly difficult to secure fuel stocks. Every country is feeling the impact, and Ghana is no exception. Transport fares may also increase as a result. Recent energy reports suggest prices could reach $200 per barrel in the coming days—if we can even secure the product,” he said.

Mr. Amoah added, “We need to focus on storing more oil. While reducing taxes could provide temporary relief, it is not a sustainable solution. It may please consumers in the short term, but it won’t address the underlying issues, especially given limited stocks. Strategic planning is essential, and we missed the chance to act when the conflict first began.”