Do you know how many fuel levies you are paying at the pump?
Ghanaians are paying more than 20% fuel levies every time they go to the pump to fill up their vehicles.
Many of them are very redundant and outdated and must be overhauled.
Globally, governments are throwing out fuel taxes to help alleviate some of the economic burdens facing their people. Which government is ready to give Ghanaians a break at the pump?
Some of the fuel levies Ghanaians are paying:
- Energy debt recovery levy
- Energy fund levy
- Price stabilisation & recovery levy
- Sanitation & pollution levy
- Special petroleum tax
- Unified petroleum pricing fund
- Road fund levy
- Fuel marking margin
- Bost margin
- Distribution compensation/promotions
Every time you fill up your vehicle with petrol you pay all these extra charges on top of the fuel. Ghanaians are being gouged at the pump with unnecessary levies.
What are the purposes of these levies that are literally adding fuel to the economic woes of Ghanaians?
Fuel taxes are supposed to be excise taxes imposed on the sale of fuel, typically petrol and diesel and are used to fund transportation infrastructure.
These taxes contribute to the Highway trust fund which supports road construction and maintenance – Road levy fund.
But what are all these nuisance levies? The government and especially politicians have a duty not only to explain them but also to account for them. To help Ghanaians understand what they are paying the next time they visit the pump.
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The author, Benjamin Amponsah Mensah is a Chemical Engineer & an energy expert.