GH¢1 fuel levy suspended

The implementation of the Energy Sector Levies (Amendment) Act, 2025 (Act 1141) has been put on hold until further notice, government has announced.

The levy which imposes GH¢1 on a litre of diesel and petrol will only take effect when market conditions are deemed favourable, the govern­ment said.

The implementation was sched­uled to take effect today Monday, June 16, 2025 after government ear­lier postponed the implementation date from June 9.

“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), Richmond Rockson, Public Rela­tions Officer of the Ministry of En­ergy, told Channel1 TV on Saturday, monitored by The Ghanaian Times.

The decision is in response to the hostilities between Israel and oil-rich Iran in the last couple of days.

The conflict between the two countries has seen the price of crude oil soar on the international market.

Israel and Iran, the seventh high­est oil producer in the world, have in the last couple of days been trading missile strikes as conflict between the two countries escalates.

The price of benchmark brent crude has since soared more than 10 per cent to sell at US$74.23 per barrel on Friday, from US$60, the highest level since January this year.

Government, Mr Rockson said had demonstrated competence in managing the economy as seen in the appreciation by the Ghana Cedi against major trading currencies and would work to improve the situation.

“From February till 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 said.

The introduction of the levy was met with opposition from the minority caucus in Parliament who boycotted its passage.

In a statement on Sunday, June 15 in response to the suspension, the caucus described the decision as evidence of the government’s “chaotic and inconsistent approach to economic governance.”

“This eleventh-hour U-turn epitomises a trial-and-error strate­gy and reveals a disturbing lack of stakeholder engagement prior to the passage of the law,” the statement signed by the Minority Leader, Alex­ander Afenyo-Markin read.

They want a complete repeal of the law in the face of the “chaos”.

“Suspending the levy is not enough. We demand a complete repeal under a certificate of urgency. Ghanaians do not deserve to be toyed with,” Mr Afenyo-Markin, MP, Effutu, insisted.

BY JULIUS YAO PETETSI

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