Increased Fuel Tax Sparks Confusion and Concern in Volta as Government Pledges Price Stability

• The Volta Region is at the centre of a debate following Finance Minister Dr Cassiel Ato Forson’s announcement of a GH₵1 increase in fuel levies
• Despite government assurances that fuel prices would not rise, many locals remain skeptical, citing past price fluctuations after similar hikes
• As the implications continue to unfold, both political parties and residents of the Volta Region have express mixed reactions to the increase

The Volta Region, a stronghold of the National Democratic Congress (NDC), is abuzz with debate over the recent announcement of a GH¢1 increase in the Energy Sector Levy.

Introduced by the government under the Energy Sector Levy Amendment Bill of 2025, the updated increment aims to address Ghana's $3 billion-plus energy sector debt.

Finance Minister, Dr Cassiel Ato Forson, has assured Ghanaians that the increment in the tax would not lead to an increase in fuel prices, citing the strong performance of the cedi.

"There will be no increase in the ex-pump price of petrol and diesel starting today," Dr. Forson stated.

Volta residents skeptical of Ato Forson's assurance

However, many residents in the Volta Region remain skeptical, citing a history of price fluctuations following similar tax hikes.

Some drivers, traders, and teachers have expressed mixed feelings about the increment. While some are cautiously optimistic, others fear a ripple effect on their livelihoods.

A tomato seller from Aflao, Akos, said she fears that an increase in fuel prices would lead to higher transport costs, affecting her business.

Commercial driver from Ho, Emmanuel, also said that he doubted the government's assurance, citing past experiences.

"They always say 'no increase,' but the moment a new tax is announced, fuel stations react," he said.

However, some residents in the Volta Region believe that the levy could help solve the energy crisis in the long run.

"It's better we solve this now than wait until the problem becomes worse," said Mavis Dogbe, a teacher from Akatsi.

Fuel tax sparks political debates

The increment has sparked a heated debate between the NDC and the opposition NPP.

Some NDC loyalists supported the levy as a necessary measure to address the energy sector debt, while others criticised it as an unnecessary burden on struggling Ghanaians.

Meanwhile, policy experts have called for structural reforms to address the energy sector debt, rather than relying on quick fixes.

Kofi Asare, Executive Director of Africa Education Watch, suggested that privatising the Electricity Company of Ghana (ECG) and adjusting tariffs to dollar rates could help manage the debt.

Energy Minister justifies fuel tax imposition

Earlier, YEN.com.gh reported that the Minister of Energy and Green Transition, John Jinapor, justified the fuel tax. The MP for Yapei-Kusawgu said that the government had assessed the energy sector and found that the liquid fuel consumed in the country was not part of the tariff structure.

He said the government required over $1 billion this year alone to procure liquid fuels, adding that even if all citizens were able to pay for the power they consumed, and the Electricity Company of Ghana (ECG) were to collect 100 per cent of the money, none of it would go towards procurement.

Proofreading by Bruce Douglas, copy editor at YEN.com.gh.

Source: YEN.com.gh