Ghana: Minority In Parliament Demands Immediate Abolition of GH₵1Fuel Levy Amid Rising Prices

Ghana’s Parliamentary Minority is demanding the immediate scrapping of the GH₵1 levy imposed on a litre of petroleum products in 2025, in order to reduce fuel costs amid the US–Israel conflict with Iran, which has disrupted supply and driven up prices across global markets.

The Government of Ghana introduced the levy with the primary objective of securing dedicated funding for the procurement of liquid fuels for power generation.

At the time, fuel prices had been declining due to the strengthening of the local currency, the cedi, against major international currencies, particularly the US dollar.

However, the Minority says the levy has outlived its purpose and is worsening the financial burden on citizens amid rising fuel costs.

Addressing a press conference in Parliament on Wednesday, the Deputy Ranking Member of the Energy Committee, Collins Adomako-Mensah, said the ongoing tensions involving Israel, the United States, and Iran have driven up global crude oil prices, directly impacting fuel costs in Ghana.

On Monday, Oil Marketing Companies in the West African nation adjusted pump prices, with petrol selling between GH₵12.29 and GH₵13.29 per litre, and diesel between GH₵13.50 and GH₵16.29 per litre.

Given the current rise in fuel costs, Collins Adomako-Mensah said the Minority believes it is appropriate for the government to scrap the levy to cushion Ghanaians.

He further argued that if the government claims it has fully restored the World Bank’s US$597 million Partial Risk Guarantee, addressed the energy sector debt, and stabilized the cedi, then the justification for the GH₵1 “Dumsor Levy” has completely evaporated.

“Keeping the one Ghana cedi levy is punishment,” he said, urging the government to repeal it immediately under a certificate of urgency and to conduct a comprehensive review of all taxes and levies embedded in petroleum prices.

The Energy Sector Levies (Amendment) Act, 2025 added approximately GH₵1 to the price build-up, bringing the total levy for debt repayment and sector shortfalls to GH₵1.95 for petrol and GH₵1.93 for diesel.

The Minority also called on the government to undertake a comprehensive review of all taxes and levies embedded in the petroleum price build-up and to identify those that can be suspended or restructured to cushion consumers from the full impact of the current global oil price shock.