The Minority in Parliament has called on the government to scrap the GH₵1 fuel levy, arguing that it is imposing an unbearable burden on Ghanaians already struggling with the high cost of living.
Speaking to journalists in Parliament, Collins Adomako Mensah, Deputy Ranking Member on Parliament’s Energy Committee, urged the government to take immediate action.
“The justification for this levy no longer exists. Maintaining it is not sound policy—it is punishment,” he stated, calling for the swift repeal of the Energy Sector Levy (Amendment) Act, 2025 under a certificate of urgency.
The Minority’s concerns come on the back of a sharp increase in fuel prices, driven by ongoing tensions involving the United States, Israel, and Iran, as well as the closure of the Strait of Hormuz.
Analysts warn that crude oil prices could surge to between $110 and $120 per barrel if the conflict persists, a development that could push petrol prices in Ghana to between GH₵15 and GH₵17 per litre.
As of the second pricing window of March 2026, diesel was selling at GH₵15.60 per litre, while petrol prices had risen above GH₵12.40 per litre.
Collins Adomako Mensah explained that the Energy Sector Levy, which adds GH₵1 to every litre of petroleum product, was originally introduced under the Energy Sector Levy (Amendment) Act, 2025 to support liquid fuel procurement and address legacy debts within the sector. However, he argued that the fiscal justification for the levy is no longer valid.
“Between January and December 2025, the government spent approximately $1.47 billion to stabilise the energy sector, including the full repayment of the GH₵597 million World Bank partial risk guarantee and the settlement of outstanding gas invoices,” he noted.
“With these debts cleared and guarantees restored, the so-called One Ghana Cedi Levy no longer serves any meaningful purpose and should be repealed without delay,” he added.
Collins Adomako Mensah further indicated that the Minority would push for a comprehensive review of all taxes and levies embedded in fuel pricing, with the aim of identifying areas where relief can be provided to ease the burden on consumers.
He also recalled that the Minority had earlier staged a walkout in Parliament in protest against the levy, arguing that its fiscal justification was weak and that its timing was inappropriate.
They are now urging the government to take swift action to shield households from further economic hardship amid ongoing shocks in the global oil market.
