Minority Pushes Policy Review on Fuel Levy as Costs Increase
The Minority in Parliament is calling for the immediate removal of the GH₵1 fuel levy, arguing that it has outlived its purpose as global oil prices rise and fuel costs surge across Ghana.
The Minority in Parliament is mounting pressure on the government to abolish the GH₵1 levy on petroleum products, insisting the tax is no longer justified and is deepening the hardship faced by consumers.
Speaking on the issue, Deputy Ranking Member on the Energy Committee, Collins Adomako Mensah, warned that global developments, particularly rising tensions among Israel, the United States, and Iran are already pushing crude oil prices higher, with direct consequences for fuel prices in Ghana.
He argued that maintaining the levy under current conditions only adds unnecessary pressure on households and businesses. According to him, the government should urgently repeal the charge and take a broader look at all taxes that contribute to fuel pricing.
Fuel prices have already climbed significantly. By the second pricing window in March 2026, diesel was going for GH₵15.60 per litre, while petrol had crossed GH₵12.40 per litre. The controversial levy, introduced under the Energy Sector Levy (Amendment) Act, 2025, contributes about GH₵1 to the final pump price, pushing total levies close to GH₵2 per litre.
The Minority also maintains that the original purpose of the levy—settling energy sector debts—has effectively been achieved. They cite payments totaling $1.47 billion made in 2025, including obligations tied to the World Bank guarantee and outstanding gas supply bills.
With those liabilities cleared, Mensah insists there is no longer any basis for keeping the levy in place. He further urged authorities to consider easing or restructuring other charges within the fuel price build-up to help mitigate the impact of rising global oil prices.
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