By Dominic Hlordzi
The Institute for Energy Security (IES) has suggested to Government to consider suspending the collection of the Price Stabilization and Recovery Levy (PSRL) on diesel.
In a statement the IES said the proposal when implement will provide modest but timely relief to consumers currently battling a surge in fuel costs.
The push for this suspension is driven by significant upward pressure on petroleum prices within the international market.
These hikes are primarily fueled by geopolitical tensions, global supply uncertainties and increased freight risks that continue to influence domestic pricing in Ghana.
While a relatively stable Cedi has helped moderate the full impact of these international increases, pump prices for both petrol and diesel are still expected to rise from today, the beginning of the second pricing window of March.
The IES argues that suspending the PSRL aligns perfectly with the policy rationale underpinning its introduction as a counter-cyclical mechanism.
Designed to cushion consumers during periods of rising fuel prices and rebuild buffers when prices decline, the levy’s temporary removal is seen as a balanced approach.
Although the relief may appear modest on a per-litre basis, the IES notes that the cumulative impact across the economy can contribute significantly to easing broader inflationary pressures.
While advocating this targeted intervention, the IES emphasized that other structural levies must remain in place to support the financial sustainability of Ghana’s energy sector.
Beyond immediate tax relief, the Institute encouraged the government to focus on long-term domestic energy resilience by improving storage management at the BOST Energies, enhancing domestic refining capacity at the Tema Oil Refinery and increasing overall operational efficiency.
The release commended the National Petroleum Authority, NPA for maintaining transparency and efficiency within the downstream pricing regime.
