The Africa Centre for Energy Policy (ACEP) has called for the abolition of Ghana’s premixed fuel subsidy, citing inefficiencies, corruption, and rising debts. ACEP’s Policy Lead for Petroleum, Kodzo Yaotse, proposed that direct financial support to fisherfolk would be a more effective alternative, bypassing the flaws of the current subsidy system. He also recommended exploring sustainable solutions like solar-powered fishing boats.
ACEP’s findings indicated irregularities in premixed fuel consumption, including increased usage in areas with little need, suggesting potential smuggling, which undermines the supply to those who genuinely need it. The think-tank reported that nearly all of the GH₵680 million from the Price Stabilisation and Recovery Levy (PSRL) is siphoned off through the subsidy, benefiting a few rather than the fisherfolk.
Yaotse also criticized hidden taxes and margins in the petroleum sector. A study by ACEP revealed that while taxes on petroleum products may seem minimal in Ghana, various hidden margins add significant costs to consumers. For example, the Bulk Oil Storage and Transportation (BOST) margin, Primary Distribution Margin (PDM), and others increased dramatically between 2018 and 2024. These margins, which are not approved by Parliament, generate billions in revenue, but much of it goes to political settlements rather than development.
ACEP proposed converting certain margins into tax revenues, freeing up GH₵6.3 billion annually for infrastructure and social programs. They also suggested commercializing BOST, listing it on the stock exchange for greater transparency. Furthermore, ACEP called on the government to prioritize addressing energy sector debts, which account for a significant portion of the levies, to release funds for development.
Meanwhile: Ghana has been ranked as the number one country globally for having the most efficient and regulated mobile money system, according to the latest GSMA ranking.
As the only African nation with an interoperable mobile money system that facilitates cross-transactions between mobile money wallets and banks, Ghana topped the Mobile Money Regulatory Index (MMRI), surpassing countries like Qatar and Brazil. Continue to read more here.
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