The Chamber of Petroleum Consumers (COPEC) has formally proposed a temporary 50 per cent reduction in the Energy Sector Shortfall and Recovery Levy, a charge commonly known as the “dumsor levy”.
In a statement released on Friday, 10 April, the Chamber argued that such a move is essential to alleviate the mounting pressure of fuel costs on the public.
This recommendation follows the government’s current review of the various taxes and levies that constitute the petroleum price build-up.
According to COPEC, lowering the levy from GH¢1 to 50 pesewas per litre would offer immediate relief at the pumps by effectively reducing fuel prices by a corresponding margin.
The Chamber maintains that this intervention would significantly decrease household expenditure on transport and energy, while simultaneously addressing heightened public anxiety regarding the potential resurgence of power outages.
The proposal is designed to strike a pragmatic balance for the state; by retaining half of the levy, the government would continue to generate the necessary revenue to support the energy sector and ensure consistent power generation.
Furthermore, COPEC suggested that this proactive measure could prevent the need for costly emergency power purchases, thereby sustaining industrial productivity and protecting long-term tax revenues.
However, the Chamber acknowledged that the measure involves certain trade-offs. It cautioned that a reduction in the levy would necessarily limit the funds available for servicing energy sector debts and might hinder essential maintenance activities if maintained indefinitely.
Consequently, COPEC has advised the government to ensure that this intervention remains strictly temporary, recommending a limited duration of one month.
By: Rainbowradioonline.com/Ghana