The Chamber of Petroleum Consumers, COPEC, has advanced a proposal calling for a temporary 50 percent reduction in the Energy Sector Shortfall and Recovery Levy, widely referred to as the “dumsor levy,” as part of urgent policy interventions aimed at reducing fuel-related financial pressure on consumers across the country.
The proposal, contained in a statement issued on Friday, April 10, comes amid ongoing government deliberations over taxes and statutory levies embedded in petroleum pricing structures. COPEC’s intervention adds to growing public discourse on the cost of fuel and its ripple effects on transport fares, household budgets, and overall inflationary trends.
Under the proposal, the levy would be reduced from GH₵1 per litre to 50 pesewas per litre, a recalibration the Chamber argues would translate into immediate relief at fuel pumps. According to COPEC, such an adjustment would directly lower the price burden on consumers by approximately 50 pesewas per litre, offering tangible short term financial respite.
The Chamber maintains that the policy would have far reaching implications for household welfare, particularly by easing transport expenditures and reducing cost pressures on energy dependent livelihoods. It further argues that the measure could help temper rising public anxiety over potential electricity supply disruptions, commonly referred to as “dumsor,” which have historically been linked to energy sector financing constraints.
Beyond consumer relief, COPEC frames the proposal as a strategic compromise that preserves fiscal functionality while easing economic strain. By maintaining half of the levy, government would still retain a revenue stream to support operations within the energy sector, including the sustenance of power generation infrastructure and ongoing plant operations.
The Chamber further contends that this retained revenue would help mitigate the need for expensive emergency power procurement, while simultaneously supporting industrial productivity and safeguarding longer term tax revenues that depend on stable energy supply conditions.
However, COPEC acknowledged that the proposal carries inherent fiscal trade offs. A 50 percent reduction in the levy would inevitably reduce inflows earmarked for servicing accumulated energy sector debts, potentially constraining scheduled maintenance and financial obligations if extended beyond a narrowly defined period.
For this reason, the Chamber has emphasized that the intervention must remain strictly temporary, proposing a duration of one month as a calibrated window for relief without undermining structural fiscal commitments.
The proposal forms part of a broader set of short term policy suggestions designed to cushion consumers against fluctuations in global petroleum prices, which continue to influence domestic fuel costs. COPEC insists that a time bound intervention of this nature reflects a pragmatic balance between immediate economic relief and long term fiscal discipline.
Ultimately, the Chamber argues that such targeted measures demonstrate responsiveness to public economic concerns while preserving essential stability within the energy sector. It has therefore urged policymakers to give urgent and favorable consideration to the proposal as part of ongoing efforts to stabilize fuel pricing and protect consumer welfare.
