Minority calls for removal of GHC 1 fuel Levy

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

Deputy Ranking Member of the Energy Committee, Collins Adomako Mensah, cited tensions involving Israel, the United States, and Iran as key drivers of global crude oil price increases, which directly affect fuel prices in Ghana.

“Keeping the one Ghana Cedi levy is punishment,” Mensah said, calling on the government to repeal it immediately under a certificate of urgency and to conduct a comprehensive review of all taxes and levies embedded in petroleum prices.

As of the second pricing window of March 2026, diesel was selling at GH₵15.60 per litre, while petrol had exceeded GH₵12.40 per litre. The Energy Sector Levy’s Amendment Act of 2025 added roughly 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.

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

“With the World Bank guarantee fully restored and the energy sector debt cleared, the justification for the GH₵1 levy has completely evaporated,” Mensah said. He added that the government should also consider suspending or restructuring other embedded levies to cushion consumers from the global oil price shock.