The Chamber of Petroleum Consumers has proposed a temporary 50 per cent reduction in the Energy Sector Shortfall and Recovery Levy, widely referred to as the “dumsor levy”, as part of efforts to ease fuel costs for consumers.

The proposal, contained in a statement issued on Friday, April 10, forms part of the Chamber’s response to the government’s ongoing review of taxes and levies within the petroleum price build-up.

According to COPEC, reducing the levy from GH¢1 to 50 pesewas per litre would provide immediate relief at the pumps, effectively lowering fuel prices by the same margin.

The Chamber believes the move would help cut household spending on transport and energy, while also addressing growing public concerns over the potential return of power outages.

It further argued that the proposal strikes a balance for government, as retaining half of the levy would still generate revenue to support the energy sector and ensure continued power generation.

COPEC noted that this approach could help avoid the need for expensive emergency power purchases, while sustaining industrial productivity and safeguarding long-term tax revenues.

However, the Chamber acknowledged that the measure comes with trade-offs, warning that a reduction in the levy would limit funds available for servicing energy sector debts and could slow maintenance activities if extended beyond the proposed period.

It therefore stressed that the intervention should be strictly temporary and limited to one month.

The proposal forms part of a broader set of short-term measures aimed at cushioning consumers against rising global petroleum prices, with COPEC urging policymakers to act swiftly while maintaining fiscal discipline and sector stability.

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COPEC asks to cut 'Dumsor Levy' by 50% to reduce fuel prices

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