Ghanaians are mounting pressure on the government to reduce levies on fuel as prices continue to soar at the pumps, largely due to ongoing tensions in the Middle East.
Fuel prices had dropped significantly prior to the US–Israel conflict involving Iran, supported by the relative stability of the local currency, even as the international benchmark, Brent crude, hovered around $70 per barrel.
However, the conflict has since driven up the prices of both crude oil and refined petroleum products, leading to higher pump prices across many economies, including Ghana.
Earlier this week, fuel prices surged, with petrol selling for more than GH¢13 per litre and diesel exceeding GH¢17 per litre.
The situation has triggered calls from various groups and individuals for the removal of some fuel taxes to provide relief to motorists.
The Ghana Private Road Transport Union (GPRTU) recently issued a 48-hour ultimatum to the government to reduce taxes on petroleum products or risk a nationwide increase in transport fares.
Samuel Amoah, the Deputy Public Relations Officer of the GPRTU, explained that the union is facing rising operational costs due to increasing fuel prices and other financial pressures. He emphasized that if the government fails to act within the stipulated timeframe, transport operators will have no choice but to increase fares to sustain their businesses.
Similarly, the Association of Ghana Industries (AGI) has called for the immediate cancellation of the recently introduced GH¢1 fuel levy, citing its growing impact on operational costs amid recent fuel price hikes linked to global tensions.
The President of AGI, Mr. Kofi Nsiah-Poku, alongside former President Dr. Humphrey Ayim-Darke, warned that businesses may be forced to pass on the increased costs to consumers if the levy remains in place.
“It is important at this point that we start discussing the removal of the GH¢1 levy to reduce our operational costs. Previously, we could absorb the cost due to the appreciation of the cedi, but if no action is taken now, we will have to reassess our operational costs and begin increasing prices—something we would prefer to avoid,” Mr. Nsiah-Poku stated during a meeting with the Minority Group in Parliament.
Former Finance Minister and former Deputy Minister for Energy, Dr. Mohammed Amin Adam, has also argued that reducing taxes on petroleum products will not adversely affect Ghana’s 2026 budget.
In a Facebook post on April 2, Dr. Amin Adam stated that the current global oil price dynamics provide sufficient fiscal space for tax relief.
“Reducing petroleum taxes will not affect the 2026 Budget,” he said.
According to him, the government is already benefiting from higher-than-projected crude oil prices amid the ongoing Middle East tensions.
“What the government has not told Ghanaians is that it has been gaining from the increase in international crude oil prices since the US–Israel–Iran tensions began,” he added.
Dr. Amin Adam explained that the 2026 Budget projected a benchmark crude oil price of $76.22 per barrel, based on an estimated output of 37.95 million barrels.
However, actual prices have exceeded $100 per barrel for most of March 2026.
“At these prices, the government is generating additional windfall revenue of more than GH¢8 billion this year,” he noted.
He argued that any revenue shortfall resulting from a reduction in petroleum taxes could be offset by surplus earnings from crude oil exports.
“The calls for the government to intervene by reducing levies are therefore justified. Any revenue shortfalls will be recovered from the additional revenue generated,” he said.
Dr. Amin Adam urged the government to act swiftly to cushion consumers against rising fuel costs.
“Government must act now,” he stressed.
Meanwhile, an economist at the University of Ghana, Prof. Godfred Bokpin, has supported calls for the government to reduce taxes on petroleum products, stating that such a move would help cushion consumers amid rising fuel costs.
He noted that the current tax burden on fuel limits the benefits Ghanaians should enjoy from the recent strengthening of the cedi.
“Yes, I agree with calls for the government to review prices on petroleum products. I believe that within government circles, there may be alignment on this issue. In the absence of geopolitical tensions in the Middle East, we know that the price build-up of fuel—particularly the level of taxes—compounds inefficiencies and prevents consumers from fully benefiting from the currency’s gains,” he explained.
Prof. Bokpin added that although he initially supported the introduction of the one-cedi fuel levy last year due to exchange rate pressures at the time, current economic conditions justify a reassessment.
“Reducing or removing some of these levies could cushion consumers against external shocks and help stabilise transport and commodity prices,” he said.
Meanwhile, Government Spokesperson Felix Kwakye Ofosu has indicated that the government may review fuel taxes and levies if rising global oil prices begin to place excessive pressure on consumers.
He stressed that any potential review would not be automatic but would depend on how geopolitical developments evolve and the extent to which they impact global oil prices.
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