The Institute for Energy Security is urging the government to suspend the PSRL on diesel in Ghana as global oil market volatility continues to push fuel prices upward.
In a statement issued ahead of the second petroleum pricing window for March, the institute said the Price Stabilisation and Recovery Levy (PSRL) on gasoil should be temporarily removed to cushion consumers and businesses facing increasing fuel costs.
According to the institute, geopolitical tensions and supply uncertainties in the global oil market are exerting pressure on petroleum product prices, which could soon be reflected in domestic pump prices.
“Although Ghana’s relatively stable currency has helped moderate the full impact of international price increases, consumers and businesses will continue to face cost pressures.” - Institute for Energy Security.
Global developments driving fuel price pressures
The institute explained that recent movements in international oil prices, combined with freight risks and global price volatility, are influencing the cost of petroleum products in Ghana.
As a result, pump prices for both petrol and diesel are expected to rise in the second pricing window of March.
IES argued that suspending the PSRL would offer a timely intervention to reduce the burden on consumers without undermining the broader stability of the country’s energy sector financing system.
The Price Stabilisation and Recovery Levy was introduced as part of Ghana’s petroleum pricing framework to serve as a counter-cyclical mechanism.
Under the policy, the levy is intended to help the government cushion consumers during periods of high fuel prices and rebuild reserves when prices decline.
IES said removing the levy at a time when fuel costs remain elevated aligns with the original purpose of the policy.
“Suspending the levy at a time when pump prices remain elevated would therefore be consistent with the original policy rationale behind the levy.”
Strengthening long-term energy resilience
While acknowledging that the direct relief from suspending the levy may appear modest per litre, the institute said the broader economic impact could help reduce inflationary pressures across sectors.
IES also commended the National Petroleum Authority for maintaining transparency in the country’s petroleum pricing regime.
Beyond short-term measures, the think tank urged the government to strengthen domestic energy resilience by improving storage management at the Bulk Oil Storage and Transportation Company and enhancing refining capacity at the Tema Oil Refinery.
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