The Minority in Parliament has intensified calls for the immediate removal of the GH₵1 fuel levy, warning that its continued implementation is worsening the financial strain on Ghanaians already grappling with rising living costs.
Speaking to journalists in Parliament, Deputy Ranking Member of the Energy Committee, Collins Adomako Mensah, argued that the levy has outlived its purpose and no longer serves any meaningful policy objective.
“The justification for this levy no longer exists. Keeping it is not policy—it is punishment,” he stated, urging the government to repeal the Energy Sector Levy Amendment Act of 2025 under a certificate of urgency.
The levy was introduced to support liquid fuel procurement and help address legacy debts within the energy sector. However, Mr Mensah noted that substantial progress has been made in settling these obligations, including the repayment of key financial guarantees and outstanding invoices.
According to him, government reportedly spent about $1.47 billion in 2025 to stabilise the sector, raising questions about the need to maintain the additional charge on fuel.
The Minority’s renewed demand comes against the backdrop of rising global crude oil prices, driven by geopolitical tensions involving the United States, Israel and Iran, as well as disruptions to supply routes such as the Strait of Hormuz.
Analysts warn that crude oil prices could climb to between $110 and $120 per barrel if the situation persists, a development likely to further increase fuel prices locally.
As of the second pricing window of March 2026, diesel was selling at approximately GH₵15.60 per litre, while petrol prices had exceeded GH₵12.40 per litre.
The Minority cautioned that the continued rise in fuel prices, compounded by the levy, risks deepening inflationary pressures and increasing the cost of transportation, goods and services.
They are therefore calling not only for the removal of the levy but also for a comprehensive review of all taxes embedded in fuel pricing, with the aim of easing the burden on consumers.
The caucus had earlier opposed the levy, staging a walkout in Parliament during its consideration, and maintains that urgent action is needed to protect households and businesses from further economic hardship.
