Only GHS 2.4bn of GHS 9.7bn annual petroleum taxes used for development — ACEP

The Africa Centre for Energy Policy (ACEP) has disclosed that out of an annual GHS 9.7 billion collected in petroleum taxes, only GHS 2.4 billion is directed towards development projects.

The rest of the funds are earmarked for debt servicing and other operational expenses in the energy sector.

According to Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP, the Special Petroleum Tax (SPT) is the only levy that contributes to national development efforts.

“Consumers are paying more for regulatory margins that do not contribute to development. In fact, the regulatory margins alone account for GHS 7.6 billion annually, spent on downstream operations by the National Petroleum Authority (NPA) and BOST,” Yaotse stated at a press conference, presenting ACEP’s report on the Downstream Petroleum Products Taxation on January 15, 2025.

He further raised concerns about the lack of accountability in how petroleum levies are managed.

“We need to convert these margins into tax revenues and redirect them towards critical infrastructure and social programs,” he stated.

ACEP recommended that the government reassess the current levy structures to maximize the impact on national development.