The African Institute of Energy Sustainability (AIES) has strongly condemned the government’s newly introduced GHS1.00 per litre Energy Levy, dubbed the “Dumsor Levy,” describing it as unjust, economically flawed, and socially unfair.
In a statement released on Wednesday, AIES pointed out that the levy, which targets fuel consumption, disproportionately burdens the transportation sector, despite claims that it aims to resolve power sector challenges.
“Over 77% of imported fuel is used for transport, not power generation. This levy unfairly penalizes ordinary Ghanaians for problems they didn’t cause,” said Dr. Samiu Kwadwo Nuamah, Executive Director of AIES.
The institute warned that the levy would push total fuel-related taxes beyond 33%, driving up the cost of goods and services and worsening the cost of living.
They further argue that the levy fails to address the structural causes of the country’s US$2.5 billion energy debt, such as unfavorable power contracts, inefficiencies, and poor planning.
AIES is therefore calling on the government to withdraw the levy and focus on sustainable reforms, including merging ECG and NEDCo, privatizing retail operations, and strengthening oversight through an independent power administrator.
“Ghana needs bold, evidence-based solutions—not more financial pressure on struggling citizens,” the statement concluded.
