The Minority in Parliament has urged the government to abolish the GH₵1 fuel levy, arguing that it is worsening the financial strain on citizens already struggling with rising living expenses.
Collins Adomako Mensah, Deputy Ranking Member of Parliament’s Energy Committee, made the appeal during an interaction with reporters in Parliament.
“The justification for this levy no longer exists. Keeping it is not policy—it is punishment,” Mr. Mensah declared, pressing the government to urgently repeal the Energy Sector Levy Amendment Act of 2025 under a certificate of urgency.
This demand comes in the wake of surging fuel prices, driven by escalating tensions involving the United States, Israel, and Iran, alongside the closure of the Strait of Hormuz.
Market analysts warn that crude oil could climb to between $110 and $120 per barrel if the conflict continues, which may push petrol prices in Ghana to between GH₵15 and GH₵17 per litre.
By the second pricing window of March 2026, diesel was retailing at GH₵15.60 per litre, while petrol had surpassed GH₵12.40 per litre.
Mr. Mensah explained that the levy, which adds GH₵1 to every litre of petroleum product, was initially introduced under the 2025 amendment to finance liquid fuel purchases and clear legacy debts in the energy sector. However, he insisted that the fiscal grounds for the levy are no longer valid.
“Between January and December 2025, the government paid approximately $1.47 billion to reset the energy sector, including full repayment of the GH₵597 million World Bank partial risk guarantee and settlement of outstanding gas invoices,” he stated.
“With the debt addressed and guarantees restored, the so-called One Ghana Cedi Levy serves no purpose and should be repealed immediately.”
He further noted that the Minority will push for a thorough review of all taxes and levies embedded in fuel pricing to identify possible areas of relief for consumers.
The Minority had earlier staged a walkout in Parliament over the levy, contending that its fiscal basis was weak and its introduction ill-timed.
They now insist that swift government action is required to shield households from additional economic hardship amid global oil market volatility.
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