Energy Ministry Says Suspension of GH¢1 Energy Sector Levy Due to Iran-Israel Unrest

• The implementation of the increased Energy Sector levy was to begin on June 16, 2025, but has been rescheduled
• The Energy Ministry confirmed this after the Ghana Revenue Authority (GRA) sent a press statement on the same matter
• A Spokesperson at the Ministry, Richmond Rockson, gave reasons for the deferment and said a new start date will be announced

The Ministry of Energy and Green Transition has confirmed that it has postponed the implementation of the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), which was to begin on June 16, 2025.

The Energy Sector Levies were to introduce additional charges of GH₵1 on petrol and diesel, and 20 pesewas on liquefied petroleum gas (LPG).

In an interview on Accra-based Channel 1 TV, Richmond Rockson, Spokesperson and Head of Communication at the Ministry, stated that the suspension is primarily due to the recent increase in global oil prices and the need to protect consumers from high fuel costs.

He explained that the government’s decision is in response to the current market instability.

“I can confirm that the government of Ghana, as issued by the GRA, has postponed the implementation of the Energy Sector Levies (Amendment) Act, 2025 (Act 1141). This levy is what has introduced GH₵1 on petrol, GH₵1 on diesel, and 20 pesewas on gas. So, yes, I can give you that confirmation.”

Richmond Rockson said the suspension is due to several domestic and international factors, including efforts to stabilise the cedi and the government’s broader objective to shield citizens from sudden fuel price surges.

“From February to date, a windfall was experienced on the fuel market as a result of the prudent management of the exchange rates, which has brought fuel prices from an average of GH₵17 to an average of GH₵11 or GH₵12, depending on which Oil Marketing Company (OMC) you buy from.”

He added that recent geopolitical developments have had a significant impact on oil prices globally.

“In fact, the last three days, if you check crude oil prices on the international market, it moved from $60 to $74, and this is the highest we’ve seen in the past five months. This has also caused some disruptions in our pricing module.”

“The President has directed the Ministers of Energy and Finance to keep monitoring the situation. So, they will keep monitoring, and as and when the factors look favourable a new date will be announced,” he added.

Kumchacha Backs GH¢1 Energy Sector Levy

YEN.com.gh reported that Kumchacha said he supports President John Mahama's increment in the Energy Sector levy.

The controversial televangelist gave reasons for his stance and called on President Mahama to implement the levy.

In his appeal to John Mahama, Kumchacha said the levy, which has been tagged as draconian, was too little and added that Ghanaians will be better off when they pay the tax.

Several social media users shred their thoughts on Kumchacha's stance in relation to the Energy Sector Levy.

Source: YEN.com.gh