The Minority in Parliament is urging the government to remove the 1 Ghana cedi fuel levy, arguing that it is placing a significant strain on Ghanaians already struggling with the high cost of living.
Speaking to journalists in Parliament, the Deputy Ranking Member of the Energy Committee, Collins Adomako Mensah, said the levy is placing an unfair and heavy burden on citizens.
“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“With the debt addressed and guarantees restored, the so-called One Ghana Cedi Levy serves no purpose and should be repealed immediately.”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 push for a thorough review of all taxes and levies included in fuel prices, to identify where reductions can be made to ease the burden on consumers.
The group had earlier staged a walkout in Parliament to protest the levy, arguing that it lacked a strong financial justification and was introduced at an inappropriate time.
They now maintain that the government must act quickly to shield households from further economic pressure, especially as global oil market shocks continue to drive up costs.
