Fuel Levy Suspension a Wise Decision Amid Oil Price Risks – Franklin Cudjoe

Franklin Cudjoe, Founding President of IMANI Africa, has endorsed the government’s decision to halt the rollout of the Energy Sector Levy—popularly referred to as the Fuel or ‘Dumsor’ Levy—describing it as a prudent and timely response to global market uncertainties.

Following the Ghana Revenue Authority’s (GRA) June 13 announcement to indefinitely suspend the GHS 1 per litre levy, Cudjoe took to Facebook to commend the move. He noted that with oil prices projected to rise due to escalating tensions in the Middle East, it made sense for the government to pause and reassess the policy’s economic implications.

“With oil prices expected to surge amid the Iran-Israel conflict, it is only sensible that government evaluates the possible impact before implementing the GHS 1 fuel levy,” Cudjoe stated.

He went on to advise the government to take a broader approach to economic resilience by accelerating domestic oil production, utilizing recent foreign exchange and gold gains strategically—especially in agriculture—and recovering misappropriated public funds from the past eight years to reinvest in critical sectors.

Cudjoe’s comments come in the midst of growing backlash from the Minority in Parliament, who have criticized the Mahama administration for abruptly suspending the levy, accusing it of erratic policymaking and insufficient consultation.

In response to the mounting pressure, President Mahama has tasked the Finance and Energy Ministries with modeling the potential effects of rising oil prices tied to the Middle East conflict, pledging that citizens will be shielded from any resulting economic strain.