Energy policy analyst Justice Ohene-Akoto has warned that Ghana’s reliance on fuel taxes as a stabilisation tool is unsustainable, urging government to focus on structural reforms in the energy sector.
Speaking on the Asaase Breakfast Show on Friday (10 April), the founder of the Africa Sustainable Energy Centre said recent moves to suspend fuel levies offer only short-term relief.
“We can’t tax our way out of our energy issues. If the fundamentals are not fixed, the debt will keep accruing,” he said.
‘Firefighting approach’ criticised
Ohene-Akoto described Ghana’s current response to fuel price shocks as reactive and cyclical.
“We can’t continue the firefighting approach—mobilising resources during crises and going back to sleep afterwards,” he stated.
He stressed the need for medium- to long-term strategies, including investment in refining capacity, diversification of the energy mix, and stronger policy implementation.
Push for energy sector reforms
The energy expert outlined several reforms government must prioritise, including:
- Expanding local refining capacity
- Renegotiating oil and gas royalties
- Investing in renewable energy and electric vehicles
- Strengthening grid infrastructure to absorb renewable power
“We want to hear that in the next five years, even if we don’t import fuel, Ghana can be sustainable,” he said.
Renewable energy challenges
Ohene-Akoto highlighted technical and financial barriers limiting renewable energy adoption, including grid instability and lack of financing options.
“You can’t just feed solar into the grid without addressing frequency fluctuations and system losses,” he explained.
He also called for dedicated financing models such as renewable energy loans to support off-grid adoption.
Energy as national security
Framing energy as a national security issue, he warned that failure to act could have severe consequences.
“If we continue this approach, we may get to a point where the energy sector becomes difficult to revive,” he cautioned.
Despite his concerns, he acknowledged that government’s current intervention is a step in the right direction.
“It’s better late than never—but beyond this, we need long-term solutions,” he added.
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