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The Minority in Parliament is urging the government to eliminate the 1 Ghana cedi fuel levy, claiming it is adding unnecessary strain on Ghanaians already battling soaring living costs. Collins Adomako Mensah, Deputy Ranking Member of the Parliamentary Energy Committee, made the demand while addressing journalists in Parliament.
“The justification for this levy no longer exists. Retaining it is not a policy decision—it’s a punishment,” Mr. Mensah emphasized, urging the government to swiftly repeal the Energy Sector Levy Amendment Act of 2025 under a certificate of urgency.
The Minority’s call comes in the wake of significant increases in fuel prices, driven by escalating tensions between the United States, Israel, and Iran, as well as the closure of the Strait of Hormuz. Experts predict that if the conflict continues, crude oil prices could soar to between $110 and $120 per barrel, potentially pushing 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 had surpassed GH₵12.40 per litre.
Mr. Mensah explained that the Energy Sector Levy, which adds GH₵1 to each litre of fuel, was introduced under the Energy Sector Levy Amendment Act of 2025 to address legacy debt in the sector and finance liquid fuel procurement. However, he argued that the fiscal rationale for the levy no longer holds, following the government’s settlement of approximately $1.47 billion in energy sector debt in 2025, including the full repayment of a GH₵597 million World Bank guarantee.
“With the debt cleared and guarantees restored, the 1 Ghana cedi levy no longer serves any purpose and should be scrapped immediately,” he said.
In addition to calling for the levy’s removal, the Minority is advocating for a comprehensive review of all taxes and levies included in fuel prices, to identify potential areas for relief for consumers. The Minority had previously staged a walkout in Parliament over the levy, criticizing its weak fiscal justification and its opportunistic timing.
They are now urging the government to act quickly to protect households from further economic hardship amid global oil price fluctuations.
Story:Efua Nessa
Source :Loco tv