The Minority in Parliament is calling on the government to scrap the 1 Ghana cedi fuel levy, saying it is placing an unbearable burden on Ghanaians already grappling with high living costs.
Deputy Ranking Member of Parliament’s Energy Committee, Collins Adomako Mensah, issued the call while speaking to journalists in Parliament.
“The justification for this levy no longer exists. Keeping it is not policy—it is punishment,” Mr Mensah said, urging the government to move swiftly to repeal the Energy Sector Levy Amendment Act of 2025 under a certificate of urgency.
The Minority’s concerns follow a sharp rise in fuel prices triggered by ongoing hostilities involving the United States, Israel, and Iran, as well as the closure of the Strait of Hormuz.
Analysts project that crude oil could reach between $110 and $120 per barrel if the conflict persists, potentially pushing petrol prices to between GH₵15 and GH₵17 per litre in Ghana.
As of the second pricing window of March 2026, diesel was selling at GH₵15.60 per litre, and petrol had exceeded GH₵12.40 per litre.
Mr Mensah said the Energy Sector Levy, which added GH₵1 to every litre of petroleum product, was initially introduced under the Energy Sector Levy Amendment Act of 2025 to fund liquid fuel procurement and address legacy debt in the sector. However, he argued that the fiscal rationale no longer applies.
“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 noted.
“With the debt addressed and guarantees restored, the so-called One Ghana Cedi Levy serves no purpose and should be repealed immediately.”
He added that the Minority will also call for a comprehensive review of all taxes and levies embedded in fuel prices to identify areas where relief can be provided to cushion consumers.
The Minority had previously staged a walkout in Parliament over the levy, arguing that its fiscal justification was weak and that the timing was opportunistic.
They now insist the government must act urgently to protect households from further economic strain amid global oil market shocks.
