The Flawed Logic Behind Defending the GHS 1 Fuel Levy

There is a strange and worrying logic gaining traction lately, particularly among those attempting to defend the new GHS 1 per litre fuel levy imposed by the current administration. What's even more surprising is that some otherwise intelligent individuals are echoing this weak argument without critically examining its flaws.

Let me walk you through it.
One of the more common defenses goes like this: “Fuel is cheaper now than it was under the previous government, even with the GHS 1 levy. So Ghanaians are still better off.” To support this, they compare current pump prices under the new tax with previous prices under the NPP government, conveniently using selective dates and figures.

For example, one argument says:
Under the NDC: 10 litres at ₵13 = ₵130 (including ₵1 energy tax per litre).

Under the NPP: 10 litres at ₵15 = ₵150, plus ₵1.50 E-levy (1% on ₵150 via electronic payment) = ₵151.50.

Therefore, we’re better off now because we save ₵21.50.

On the surface, it sounds reasonable. But it collapses under the slightest scrutiny.

Let’s start with the fundamentals. Fuel prices are not fixed. They fluctuate based on global oil prices, forex volatility, taxes, and supply chain dynamics. Today, the price may be ₵13 per litre. Tomorrow, it could easily hit ₵16 or more. The critical question that defenders of this tax fail to answer is this:

When fuel prices inevitably rise again, as they always do, will this GHS 1 tax be scrapped?

We all know the answer: No. The tax is fixed and here to stay. It is not tied to the price of fuel and does not adjust automatically. So when prices go up, Ghanaians will suffer the double blow of higher fuel costs and an additional GHS 1 per litre. The same people who are using today’s lower prices as justification will have no defense when fuel hits ₵17 or ₵18 and yet the tax remains untouched.

Now here’s the part many conveniently gloss over. The GHS 1 is charged per litre—not per gallon. In Ghana, one gallon equals 4.5 litres. So you are actually paying GHS 4.50 extra per gallon.

Let that sink in.
Imagine buying just 10 gallons a week as a commercial driver or heavy fuel user. That’s GHS 45 every week, GHS 180 a month, and GHS 2,160 a year—from just one additional tax. That is not “insignificant.” That is not “marginal.” That is crippling for the average Ghanaian household.

And this is not a one-time payment. It compounds with every litre, every gallon, every trip.

Now think about the ripple effect. Fuel is not just for cars. It powers transportation, factories, generators, water pumps, cold stores, delivery services, food production, and virtually every aspect of our daily lives. When fuel becomes more expensive, everything becomes more expensive. Transport fares rise. Food prices increase. Goods cost more to deliver. Electricity generation gets pricier. Your pocket bleeds from every angle.

Yet, the people defending this policy want us to ignore this cascading effect as though it’s imaginary or insignificant. That’s not just misleading—it’s mischievous. They want us to pretend the economy doesn’t run on fuel. They want us to overlook the basic truth: increase fuel cost, and you increase the cost of living.

Let’s even grant them their premise, that fuel is cheaper now. That still doesn’t justify a permanent tax on every litre purchased by every Ghanaian, especially when it hits the poor and working class the hardest. These are the people who spend the highest percentage of their income on transportation and energy.

This is why their logic is not just weak—it is deceptive and dangerous. In my earlier write-up, I anticipated this line of reasoning and asked a simple but powerful question:

Is this levy temporary or permanent? And if it's permanent, for how long will Ghanaians bear this burden?

Let’s break this down further. A commercial driver who buys 50 litres a week is now paying GHS 50 extra. That’s GHS 200 a month. GHS 2,400 a year. And it won’t stop there.

Now consider this. The E-Levy was 1% on electronic transfers above GHS 100 per day. It was, in many cases, avoidable. You could transact offline, use cash, or restructure payments. But this fuel levy? You can’t avoid it. You can’t skip it. Whether you earn GHS 500 or GHS 50,000 a month, you’re taxed the same per litre. That makes it regressive and unjust.

So who really benefits from this levy? Is it the student? The nurse? The market woman? Or is it just another tool to squeeze the last pesewa out of the average Ghanaian to grease the machinery of a promise-breaking government?

What’s more annoying is the arrogance with which some people defend this tax—talking down to those who complain, implying that they lack understanding. It’s insulting. It’s tone-deaf.

And it’s especially rich coming from the same people who fiercely criticized the E-Levy, even when it was arguably lighter, avoidable, and only taxed transactions—not daily survival. But now that their camp is in charge, they suddenly see technical wisdom where there is clear hardship.

Let’s not forget, Dr. Ato Forson emphatically promised no new taxes. So what changed? Why are we being gaslit into accepting this as “necessary”?

This government hasn’t even finished its first year, and the pressure is already unbearable. What happens next year? More levies? More backpedaling? More spin?

Those who branded themselves as “neutrals” and tore down every NPP policy—no matter how reasonable—should be ready. Because what’s coming will test their consistency and expose their hypocrisy.

To conclude, defending a per-litre permanent tax with temporary price dips is not just bad economics—it is bad faith. It is a dangerous distraction aimed at pacifying people in the short term while preparing them for long-term pain.

Ghanaians deserve leadership, not lectures. Solutions, not spin. Relief, not rhetoric.

By Victor Raul Puobabangna Plance from Eggu in the Upper West Region of Ghana

#Puobabangna