The Chamber of Petroleum Consumers (COPEC) has proposed a temporary dumsor levy reduction of 50 percent as part of efforts to cushion consumers against rising fuel costs.
In a statement issued, the Chamber recommended cutting the Energy Sector Shortfall and Recovery Levy from GH¢1 to 50 pesewas per litre, a move it says would deliver immediate relief at the pumps.
According to COPEC, the proposed adjustment would reduce fuel prices by 50 pesewas per litre, easing the burden on households already grappling with higher transport and energy costs.
Immediate Relief for Consumers
The Chamber argued that lowering the levy would have a direct impact on consumer spending, particularly for transport-dependent households and businesses.
It noted that the measure could also help calm public concerns about the possibility of renewed power outages, commonly referred to as “dumsor,” by maintaining steady funding for the energy sector.
COPEC said the proposal strikes a balance between affordability and sustainability, ensuring that consumers benefit from lower prices without compromising critical energy operations.
While advocating for the reduction, COPEC emphasised that retaining half of the levy would still provide government with a steady revenue stream to support power generation and sector operations.
This, it said, would help avoid costly emergency power procurement while sustaining industrial productivity and protecting long-term tax revenues.
The Chamber believes the approach offers a practical compromise that supports both consumers and the broader economy.
Risks and Time-Bound Implementation
However, COPEC acknowledged that the proposal comes with potential trade-offs. A reduction in the levy would lower funds available for servicing energy sector debts and could delay maintenance activities if extended beyond the short term.
For this reason, the Chamber stressed that the intervention should be strictly limited to one month.
It maintained that such a targeted and temporary measure would provide relief without undermining fiscal discipline or long-term sector stability.
COPEC has therefore urged policymakers to give urgent consideration to the proposal as part of a broader strategy to cushion consumers from global petroleum price shocks.
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