Minority Demands Immediate Scrapping of GH₵1 Fuel Levy Amid Surging Prices and Economic Pressure

The Minority in Parliament has intensified calls for the immediate removal of the GH₵1 fuel levy, warning that the policy is exacerbating the financial strain on Ghanaians already battling rising living costs.

Speaking to journalists in Parliament, the Deputy Ranking Member of the Energy Committee, Collins Adomako Mensah, described the continued imposition of the levy as unjustifiable and punitive.

“The justification for this levy no longer exists. Keeping it is not policy—it is punishment,” he stated, urging government to urgently repeal the Energy Sector Levy Amendment Act, 2025 under a certificate of urgency.

The renewed pressure from the Minority comes against the backdrop of escalating global tensions involving the United States, Israel, and Iran, as well as disruptions to oil supply routes following the closure of the Strait of Hormuz—developments that have triggered a sharp increase in fuel prices.

Energy analysts warn that crude oil prices could surge to between $110 and $120 per barrel if the conflict persists. This could drive petrol prices in Ghana to as high as GH₵15 to GH₵17 per litre.

As of the second pricing window in March 2026, diesel was retailing at GH₵15.60 per litre, while petrol prices had already crossed GH₵12.40 per litre.

Mr. Mensah noted that the GH₵1 levy was originally introduced to support liquid fuel procurement and address longstanding debts within the energy sector. However, he argued that the government has already met these obligations.

According to him, between January and December 2025, approximately $1.47 billion was spent to stabilise the sector, including the full repayment of the GH₵597 million World Bank partial risk guarantee and the settlement of outstanding gas supply invoices.

“With the debt addressed and guarantees restored, the so-called One Ghana Cedi Levy serves no purpose and should be repealed immediately,” he stressed.

He further revealed that the Minority will push for a broader review of taxes and levies embedded in fuel pricing, with the aim of identifying opportunities to ease the burden on consumers.

The caucus had earlier staged a walkout in protest against the levy, citing weak fiscal justification and poor timing. They now maintain that urgent government intervention is needed to shield households from worsening economic hardship driven by global oil market volatility.