Accra, Ghana – April 15, 2026 – Ghana stands to lose approximately GH¢422 million in government revenue every month if proposed tax reductions on petroleum products are implemented, the Centre for Environmental Management and Sustainable Energy (CEMSE) has disclosed.
The think tank's warning comes as the country experiences sharp increases in fuel prices driven by global market tensions, particularly recent geopolitical developments involving Iran and its allies.
According to CEMSE's analysis, diesel prices have surged by 63 per cent between February and April 2026, rising from GH¢10.47 to GH¢17.10 per litre. Over the same period, petrol increased by 36 per cent, while liquefied petroleum gas (LPG) went up by 18 per cent.
Product-specific tax cuts proposed
Rather than applying uniform tax reductions, CEMSE is recommending a targeted, product-specific approach. The organisation proposes a GH¢0.50 per litre cut on petrol and a GH¢1.00 per litre reduction on diesel. Additionally, it suggests a temporary relaxation of the Cylinder Recirculation Margin to ease the financial pressure on LPG consumers.
The projected monthly revenue loss breaks down to GH¢142 million from petrol and GH¢253 million from diesel, with further losses expected from adjustments to LPG-related margins.
Offsetting the shortfall
To compensate for the anticipated revenue loss without destabilising the national budget, CEMSE recommends leveraging windfall revenues from Ghana's upstream petroleum sector, as well as surplus funds from the Unified Petroleum Price Fund (UPPF).
Broader economic concerns
The sustained fuel price hikes have already triggered widespread concern. Commercial transport operators are pushing for fare adjustments, and analysts warn that continued increases could worsen inflation and threaten Ghana's macroeconomic stability.
CEMSE emphasised that while providing relief to consumers is necessary, it must be carefully balanced with fiscal discipline. The organisation concluded that a differentiated, product-specific tax strategy would offer immediate relief to Ghanaians while protecting government revenue and ensuring long-term economic sustainability.
