The New Patriotic Party (NPP) Policy Committee on Energy has called on the government to suspend taxes and levies on petroleum products, warning that the current approach to cushioning consumers from rising fuel prices could trigger another energy sector debt crisis.
The committee said the government’s decision to maintain a GH¢2 per litre intervention on diesel by suspending statutory margins in the downstream petroleum sector was creating a financial gap of more than GH¢500 million every month.
According to the committee, the cost rises to nearly GH¢683 million per month when what it described as implied support to the Unified Petroleum Price Fund (UPPF) is included.
In a statement signed by the Chairman of the NPP Policy Co-ordination Committee, Kojo Oppong Nkrumah, the party claimed that approximately GH¢2.076 billion had already been withheld from the Bulk Oil Storage and Transportation Company (BOST), distributors, fuel markers and the UPPF across April, May, August and September 2026.
The committee argued that the withheld revenue was not being replaced and could eventually translate into deferred maintenance, supplier arrears, institutional borrowing and additional public debt.
The NPP said it welcomed measures intended to protect consumers from the impact of the current crisis in the Gulf region but rejected what it described as a deceptive approach to providing relief.
It argued that the GH¢2 diesel intervention was not being financed through lower international petroleum prices or by the government foregoing its own tax revenue.
Instead, the committee said, statutory margins that finance key downstream petroleum operations had been suspended.
It identified the BOST margin, primary distribution margin, fuel marking margin and a component related to the UPPF as among the revenue streams affected by the intervention.
The committee estimated that the suspended margins amount to approximately GH¢519.12 million per month, based on estimated monthly diesel consumption of about 259.56 million litres.
It warned that removing revenue while maintaining the corresponding obligations could leave petroleum sector institutions struggling to maintain infrastructure and meet their financial commitments.
The NPP committee also warned that the intervention could become increasingly expensive while providing diminishing relief to consumers.
It cited pricing data for the September 16–30, 2026 window, which it said showed crude oil rising from US$92.11 to US$98.18 per barrel, representing a 6.59 per cent increase.
It further cited increases of 14.57 per cent in international petrol prices, 4.85 per cent in diesel and 13.47 per cent in LPG, alongside a depreciation of the cedi from GH¢11.40 to GH¢11.50 to the US dollar.
The committee attributed the developments to renewed hostilities involving Iran, the United States and Israel, disruptions around the Strait of Hormuz and declining global petroleum inventories.
It projected that diesel prices could exceed GH¢18 per litre at the pump despite the GH¢2 intervention, while the underlying price could rise above GH¢20 without the intervention.
The NPP said the government should suspend taxes and levies on petroleum products rather than suspend margins needed to finance downstream operations.
It pointed specifically to the Energy Sector Shortfall and Debt Repayment Levy, which it said currently accounts for GH¢1.93 per litre of diesel following a GH¢1 per litre increase introduced in 2025.
The committee argued that suspending taxes would allow the government to finance the relief from its own revenue rather than shifting the burden onto BOST and other downstream institutions.
It further said such an approach would make the cost of the intervention visible in the national budget and allow Parliament and the public to scrutinise it.
According to the committee, maintaining the statutory margins would also ensure that BOST, distributors, fuel-marking service providers, primary distributors and the UPPF continue to receive the funds required for their operations.
The committee also argued that the government has sufficient fiscal room to provide relief to consumers.
It cited the 2026 Budget, which projected a benchmark crude oil price of US$76.22 per barrel and production of 37.95 million barrels for the year.
The NPP said crude prices had risen as high as US$110 per barrel during the peak of the conflict and were averaging about US$89 for the year, while oil production had also exceeded the budget projection.
Based on those developments, the committee estimated that the government had generated an additional GH¢8 billion to GH¢9 billion in oil-related revenue.
It said this represented roughly six times the debt it claimed had been accumulated in the downstream petroleum sector through the intervention.
The NPP Policy Committee on Energy urged the government to change course before the situation becomes irreversible.
It called for the restoration of statutory downstream petroleum margins, publication of the full cost of the intervention and suspension of taxes and levies on fuel for the duration of the current international crisis.
The committee also warned against indefinitely subsidising the impact of a geopolitical conflict that Ghana cannot control.
It questioned how long the government could sustain the intervention if the crisis continued for another month or several months, and whether the subsidy would have to increase if crude oil prices moved significantly above US$100 per barrel.
“Restore the margins. Publish the cost. Stop digging the hole. Suspend the taxes,” the committee said.
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