Minority Demands Removal of Tax on Fuel: “Keeping the GH¢1 Levy is Punishment”

• The Minority in Parliament called for the urgent repeal of the GH¢1 fuel levy, citing rising costs for citizens
• Deputy Ranking Member blames global tensions for soaring crude oil prices, impacting Ghana's fuel costs
• Government urged to restructure levies to alleviate financial burden on consumers amid ongoing economic challenges

The Minority in Parliament has called on the government to scrap the GH¢1 levy on petroleum products, arguing that it has outlived its purpose and is worsening the financial burden on citizens amid rising fuel costs.

Deputy Ranking Member of the Energy Committee, Collins Adomako Mensah, said the ongoing tensions involving Israel, the United States, and Iran have driven up global crude oil prices, directly impacting fuel costs in Ghana.

“Keeping the one Ghana Cedi levy is punishment,” he said, urging the government to repeal it immediately under a certificate of urgency.

As of the second pricing window of March 2026, diesel was selling at GH¢15.60 per litre, and petrol had exceeded GH¢12.40 per litre. The Energy Sector Levy’s Amendment Act of 2025 added approximately GH¢1 to the price build-up, bringing the total levy for debt repayment and sector shortfall to GH¢1.95 for petrol and GH¢1.93 for diesel.

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The levy was aimed at addressing long-standing debt and financial shortfalls in the energy sector.

The Minority pointed out that the government had fully addressed the energy sector’s outstanding debt between January and December 2025, paying about $1.47 billion, including repayment of GH¢597 million drawn on the World Bank partial risk guarantee and settlement of all pending gas invoices.

He added that the government should also consider suspending or restructuring other embedded levies to cushion consumers from the global oil price shock.

How did government justify the increased levy?

Finance Minister Cassiel Ato Forson said the amendment for the increase would raise additional revenue to fund the needs in the power sector.

President John Mahama also defended the increase in the fuel levy, describing it as a necessary and justifiable step to stabilise Ghana’s energy sector.

The Minister for Energy and Green Transition, John Jinapor, defended the increment, saying it is the right time to impose it because of the favourable fuel prices.

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After the strengthening of the cedi, fuel is now selling at between GH¢11 and GH¢12.5.

"Fuel was around GH¢16.00, and a sensitive government will not slap a tax when fuel is GH¢16.00. You couldn't have imposed that tax around that time when fuel was still very high, and so you needed to work to bring fuel down to this level and share the gain with Ghanaians."

Bawumia slams Mahama government over dumsor levy

YEN.com.gh reported that Former Vice President Dr Mahamudu Bawumia criticised the government for raising the tax on petroleum products.

Bawumia also accused the Mahama administration of campaigning on deceptive promises because of the introduction of what he called a dumsor levy.

He believes this increased tax is more costly than the scrapped Electronic Transfer Levy.

Source: YEN.com.gh