The Institute of Economic Research and Public Policy (IERPP) has sounded an alarm over significant revenue losses in Ghana’s fuel sector. More than 200 million litres of fuel are unaccounted for between 2020 and 2025. This has led to tax revenue losses exceeding GH¢600 million. The losses pose a serious threat to Ghana's economic recovery efforts.
Executive Director Prof. Isaac Boadi stated that reports from industry groups and oversight bodies confirm ongoing leakages across the fuel supply chain. These findings are supported by analyses from the Petroleum Product Analysis Report for 2025 and the Public Interest and Accountability Committee (PIAC). The institute points to weak monitoring at ports and throughout distribution as key reasons for these losses. The Chamber of Oil Marketing Companies has proposed real-time tracking systems and stricter monitoring of fuel movements.
This situation occurs even as Ghana's overall tax revenue has seen nominal growth. Data from the Ghana Revenue Authority (GRA) shows tax revenue rose from GH¢43.9 billion in 2019 to GH¢153.6 billion in 2024. The GRA even exceeded its 2024 target by GH¢7.6 billion. Customs revenue grew significantly, reaching GH¢45.3 billion in 2024. However, indirect taxes underperformed. Total revenue and grants for the first eleven months of 2025 fell short of their target.
IERPP stressed that Ghana’s economy cannot withstand such continuous revenue leakages while its fiscal situation remains delicate. The World Bank reported that Ghana’s tax collection averaged 13.2% of GDP between 2017 and 2021. This is below the country’s potential tax capacity of 21.2% of GDP. Every loss in petroleum taxation and customs administration weakens the nation’s ability to fund public services. The 2024 Auditor-General's report also identified GH¢18.42 billion in financial irregularities.
The institute questioned the persistence of these leakages despite digital reforms like the Electronic Revenue Assurance System. Prof. Boadi urged the government to implement stricter enforcement measures and ensure accountability. Ghana needs to prioritize transparency and accountability in its revenue mobilization efforts. The IERPP’s call for action highlights a critical juncture for Ghana's fiscal management and economic stability.