Fuel Price Relief Means No Justification for Fare Hikes – Energy Security Expert

Energy security expert Prince Lumor has welcomed government’s latest fuel price adjustment, describing it as a timely intervention that offers much-needed relief to consumers while removing any basis for transport fare increases.

Speaking to Kojo Preko Dankwa on Kessben Maakye show in Accra, he explained that the government’s decision to abolish the GH¢2 levy and reduce the price of diesel demonstrates that authorities are responding to public concerns over the rising cost of living.

He argued that with fuel prices now reduced, transport operators who had earlier threatened to increase fares no longer have any justification to do so.
“With the current intervention, there is no justification for anyone to increase transport fares,” he stressed.

Prince Lumor, however, cautioned that government cannot sustain fuel price interventions indefinitely through budgetary support alone, warning that such an approach could worsen the country’s debt burden.
He called for urgent reforms within the energy sector, particularly the settlement of outstanding debts owed to Independent Power Producers (IPPs), to ensure long-term stability.

He further explained that the Energy Sector Levies (Amendment) Act, commonly referred to as the “Esla levy,” was introduced to guarantee a constant fuel supply and help clear legacy debts in the petroleum sector.
Describing the removal of the GH¢2 levy on diesel as a significant consumer protection measure, Prince Lumor said the move is expected to ease pressure on households and businesses while supporting broader economic recovery.