GPRTU halts strike over postponed fuel tax
By: Ernest Afram
The Ghana Private Road Transport Union (GPRTU) has suspended its planned nationwide strike following the government’s decision to postpone the implementation of the controversial GHS1 fuel levy.
The levy, originally scheduled to take effect today, June 10, 2025, has now been deferred to Sunday, June 16, 2025. The development follows several days of public outcry and intense discussions between transport operators and the Ministry of Transport.
In an interview, the Public Relations Officer of the GPRTU, Ibrahim Moro Abass, said the union agreed to halt its industrial action based on assurances from the government.
“We have called off the intended sit-down strike action. We’ve been engaged by the Transport Ministry, and we shall communicate our final decision on June 16,” Mr. Abass stated.
The fuel levy is part of the new Energy Sector Levy (Amendment) Act, 2025, signed into law by President John Dramani Mahama on June 5. The Act imposes a tax of one Ghana cedi on every liter of fuel sold in the country and is expected to raise approximately GHS5.7 billion annually.
President Mahama defended the decision as a “difficult but necessary” measure to resolve Ghana’s energy sector debt crisis and prevent recurring power shortages. Speaking at the Jubilee House during the signing ceremony, he explained that the funds would be used exclusively for energy-related expenditures, including the servicing of outstanding debts and the procurement of fuel for thermal power generation.
“Although painful, this is a decision that must be taken. We are not here to take only the easy decisions. This money will not go into the Consolidated Fund. It will be ring-fenced, regularly audited, and used only for the purpose for which it is collected,” President Mahama stated.
He added that the energy sector currently holds over $3.1 billion in legacy debt, with an additional $1.8 billion required to meet short-term fuel procurement needs. Failure to address the problem, he warned, could threaten Ghana’s productivity and economic growth.
The GPRTU, however, strongly opposed the new levy, describing it as a heavy burden on transport operators and commuters. The union had threatened to withdraw its services if the government did not suspend the levy before the initial June 10 implementation date.
While the union has now backed down from immediate industrial action, it insists that the deferment is only temporary and has vowed to revisit its stance if the government fails to address their concerns by the new date.
“We are monitoring the situation closely. Our members and the public are deeply concerned about the impact this levy will have on transport fares and the cost of living,” Mr. Abass said.
