₵1 fuel levy halted after public outcry
The government has suspended the controversial GHS1 levy on every litre of petrol and diesel.
The levy, which was supposed to take effect today, Monday, June 16, was suspended on Saturday.
The decision follows growing opposition from transport unions, civil society groups, and the general public, who raised alarm over the potential burden on already strained household incomes.
In a statement issued on Saturday, Richmond Rockson, Spokesperson and Head of Communications at the Ministry of Energy and Green Transition, announced the indefinite suspension.
“The implementation date for the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), which would have taken effect from Monday, 16th of June 2025, has been postponed after consultations with stakeholders. A new effective date will be communicated in due course,” Mr. Rockson said.
His announcement came a day after the Ghana Revenue Authority (GRA) issued a public notice postponing the operationalisation of the levy, citing the need for further technical and operational readiness.
The Energy Sector Recovery Levy, introduced through recent amendments to the Energy Sector Levies Act, was projected to raise about GHS5.7 billion each year. The funds were intended to help reduce Ghana’s over USD3 billion energy sector debt and secure consistent fuel supply for electricity generation.
However, widespread concerns over the timing and its potential impact on fuel prices triggered intense backlash.
Critics argued that the levy would compound economic hardship amid rising inflation and transportation costs. Several transport unions had threatened fare hikes, while civil society organisations called for its withdrawal altogether.
With the implementation now suspended, the Ministry and the GRA have indicated that a new date will be announced after further stakeholder engagement.
