The Africa Sustainable Energy Centre (ASEC) has welcomed the Government of Ghana’s decision to remove selected taxes and margins on petroleum products, describing the move as timely and responsive to current global energy challenges.
In a press release dated April 12, 2026, ASEC commended President John Dramani Mahama and his administration for what it described as a swift and decisive intervention following an emergency Cabinet meeting held on April 9, 2026.
The Centre noted that the decision comes at a critical time when global fuel prices are rising sharply due to ongoing tensions in the Middle East, placing pressure on households and the transport sector.
ASEC said the government’s action reflects a people-centred approach to energy policy, highlighting that rising fuel prices have far-reaching effects beyond motorists, including impacts on food security, transport costs, small businesses, and overall economic wellbeing.
The organisation further indicated that Ghana has the fiscal capacity to absorb the impact of the tax removal, citing higher global crude oil prices above the country’s 2026 budget benchmark of $76.22 per barrel. It said this has generated windfall revenues from crude exports, which can help offset potential revenue losses from the tax cuts.
ASEC also praised transport unions, particularly the Ghana Private Road Transport Union, for exercising restraint in not immediately increasing transport fares following an appeal by the President.
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While welcoming the intervention, ASEC called on the government to pursue long-term reforms aimed at strengthening energy resilience and reducing exposure to global oil price shocks.
The Centre urged authorities to explore preferential fuel supply agreements with countries such as Nigeria, the Republic of Congo, and Algeria, as part of efforts to diversify supply sources and reduce reliance on Middle Eastern imports.
It also emphasised the need to accelerate investments in renewable energy, including solar and wind, as a sustainable way to protect the economy from volatility in global fossil fuel markets.
Among its medium-term recommendations, ASEC called for the expansion of Ghana’s strategic petroleum reserves, a review of royalty and revenue agreements with oil companies, and the strengthening of force majeure provisions in energy contracts.
For the long term, the Centre advocated the rehabilitation and expansion of the Tema Oil Refinery, diversification of the national energy mix, and the adoption of a hybrid energy transition strategy that balances current reliance on oil and gas with a gradual shift toward cleaner energy solutions.
ASEC reiterated its commitment to supporting the government and stakeholders in advancing policies that promote energy access, affordability, and security, while strengthening Ghana’s overall energy framework.
Source: Starrfm.com.gh
