The challenges of sustaining and developing roads in Ghana are well-known, and regardless of efforts, the nation’s highway infrastructure nonetheless faces severe shortcomings.
Probably the most pragmatic and equitable options lies in financing highway tasks by means of a particular levy on gas consumption, slightly than counting on conventional highway tolls or burdening the price range with inadequate funds.
On this article, I’ll argue for the implementation of a gas levy that funds highway building and upkeep whereas eliminating highway tolls and abolishing automobile insurance coverage and roadworthy certification charges.
I will even suggest the creation of a pension scheme for industrial drivers tied to security efficiency.
This answer just isn’t solely truthful but in addition progressive in its construction. It faucets into the basic relationship between gas consumption and highway use, guaranteeing that the extra you employ roads, the extra you contribute to their maintenance.
This technique can generate substantial income—probably as much as $1 billion yearly—whereas sustaining equity throughout all highway customers.
The Logic of a Gasoline Levy for Street Funding
Each automobile that consumes gas makes use of the highway. Whether or not it’s a passenger automobile, bus, truck, or bike, roads and automobiles are inseparable in performance. The extra you drive, the extra gas you eat, and the extra you put on down the highway.
A gas levy calculated per litre is, due to this fact, an equitable approach to make sure that highway customers contribute pretty to highway upkeep and building based mostly on their precise utilization of the infrastructure.
In contrast to highway tolls, that are fastened at sure factors and have a tendency to inconvenience drivers by means of congestion and wasted time, a gas levy is seamless and easy.
Drivers pay as they refuel—no further stops, no toll cubicles. It’s a system the place cost is instantly proportional to highway utilization, making it inherently truthful. If you happen to use roads extensively, you pay extra; should you use them much less, you pay much less.
Sweeteners for Car Homeowners and the Public
The removing of highway tolls in 2021 was celebrated by many Ghanaians who had lengthy been pissed off with the inefficiencies and delays brought on by tollbooths. This ought to be maintained, as highway tolls have confirmed cumbersome and will not be scalable in as we speak’s period of excessive site visitors volumes.
Along with retaining the tolls eliminated, this coverage may also supply additional incentives. I suggest abolishing charges for automobile insurance coverage and roadworthy certificates, as a substitute funding these by means of the improved gas levy.
This method removes the upfront value burden on drivers and automobile homeowners whereas spreading the price over time based mostly on precise highway use.
Underneath this scheme, automobile insurance coverage and roadworthy certification will nonetheless be necessary, however their prices will not be paid out-of-pocket. As a substitute, drivers would contribute incrementally each time they refuel, eliminating the necessity for giant one-time funds.
For the typical automobile proprietor, this is able to symbolize a a lot much less disturbing and extra predictable system for sustaining authorized compliance and automobile security requirements.
Business Car Driver Pension Scheme
To additional improve the fairness of this method, I suggest the institution of a pension scheme for industrial drivers, funded by the gas levy. The scheme can be tied to drivers’ security data, rewarding these with glorious security histories and long-standing service.
This pension would function each an incentive for safer driving and a social security internet for drivers who typically face monetary insecurity after retirement.
Business drivers, who log extra miles and use extra gas, would naturally contribute extra to the fund, however they might additionally obtain extra advantages.
The pension would assist enhance the long-term welfare of Ghana’s drivers, whereas the protection file standards would encourage accountable driving conduct, lowering accidents and making the roads safer for everybody.
Equity and Fairness of the Levy System
One of many key strengths of this method is its equity. In contrast to the fastened charges related to highway tolls or insurance coverage funds, the gas levy is versatile and usage-based. You solely pay once you refuel, and the quantity you pay is instantly tied to how a lot you employ the highway.
If a driver not often makes use of the roads or drives a fuel-efficient automobile, they may naturally pay much less. Conversely, those that use the roads closely, resembling industrial drivers and long-distance vacationers, can pay extra, as they’re utilizing the infrastructure extra extensively.
This can be a pay-as-you-go system that displays actual highway use, slightly than an arbitrary or fastened cost system.
This mannequin ensures that contributions are based mostly on utilization, making it probably the most equitable methods to fund highway building and upkeep. Those that profit most from the roads will contribute essentially the most, whereas informal highway customers won’t be disproportionately burdened.
It additionally alleviates issues over funding highway upkeep from normal taxation, which regularly spreads the price to those that might not even use the roads often.
Producing $1 Billion Yearly for Ghana’s Roads
Primarily based on gas consumption charges in Ghana, a revised gas levy of three.93 cedis per litre may generate the specified $1 billion in annual income for highway upkeep and building. Ghana consumes roughly 4 billion litres of gas per 12 months, and with a levy of three.93 cedis per litre, the nation may increase round 15.72 billion cedis per 12 months.
On the present change charge of 15.7 cedis to 1 USD, this interprets to roughly $1 billion USD yearly (calculated as 15.72 billion cedis ÷ 15.7 = $1 billion USD). This would offer a big and sustainable supply of funding for Ghana’s highway infrastructure, guaranteeing that roads will be maintained and expanded with out counting on highway tolls or conventional types of taxation.
Partaking Stakeholders for a Profitable Coverage Rollout
For this coverage to succeed, it’s important to interact all related stakeholders. This contains automobile homeowners, transport unions, industrial drivers, highway contractors, and authorities businesses. Public communication will likely be key to making sure that highway customers perceive the equity and advantages of this method.
A nationwide consciousness marketing campaign, led by the Ministry of Roads and Highways in collaboration with the Ministry of Transport and the Nationwide Insurance coverage Fee, ought to clarify the levy’s goal and its benefits over the present system. The marketing campaign must also spotlight the removing of highway tolls and the abolition of direct charges for automobile insurance coverage and roadworthy certificates as sweeteners to make the coverage extra palatable to the general public.
Moreover, common suggestions classes with transport unions and highway consumer associations will make sure that issues are addressed and the system is constantly refined to serve the wants of the general public.
Conclusion
The introduction of a gas levy to finance highway building and upkeep in Ghana just isn’t solely possible but in addition essentially the most equitable answer. By linking highway use on to gas consumption, this coverage ensures that those that use the roads most contribute proportionally to their maintenance. The removing of highway tolls, together with the abolition of car insurance coverage and roadworthy certificates charges, will make the coverage much more engaging to drivers.
Moreover, the introduction of a pension scheme for industrial drivers, tied to security data, would make sure that drivers are rewarded for secure driving and safe a retirement plan. This coverage can generate $1 billion yearly, offering a constant and dependable supply of funding for highway infrastructure in Ghana.
This concept was first proposed for the 2021 mid-year price range overview however was sadly diluted by the introduction of the e-levy, and highway tolls had been eliminated and not using a sustainable different for highway funding. Now’s the time to revisit and refine this answer for the advantage of all Ghanaians.