Minority calls for scrapping of 1 cedi fuel levy, describes it as punishment on Ghanaians

Parliament’s Minority Caucus is urging the government to immediately abolish the one Ghana Cedi levy on fuel, arguing that the tax imposition has become an unnecessary burden on citizens already grappling with a high cost of living.

Speaking to journalists in Accra, Collins Adomako Mensah, Deputy Ranking Member of the Parliamentary Select Committee on Energy, described the continued collection of the levy as unjustifiable and punitive.

“There is no justification for the existence of the 1 Ghana Cedi fuel levy; it is a punishment, so the government must scrap it,” Mensah stated.

The lawmaker explained that the levy was originally introduced under the Energy Sector Levy Amendment Act of 2025 to help retire debts within the energy sector. However, he noted that between January and December 2025, the government had successfully paid approximately $1.47 billion toward cleaning up the sector’s finances.

Additionally, Mensah pointed to the GHC597 million World Bank partial risk guarantee, which he said had been used to settle outstanding gas invoices, further eliminating the need for the continued levy.

The minority’s demand comes at a time when global fuel prices are already under pressure due to escalating conflict involving the United States, Israel, and Iran. Industry experts are projecting that crude oil prices could surge to between $110 and $120 per barrel in the coming weeks, which would push petrol prices in Ghana to between GHC15 and GHC17 per litre.

Transport operators have already expressed concern over the rising fuel prices, with some driver unions threatening to increase transportation fares should the situation worsen.

The Minority Caucus maintains that removing the levy would provide some relief to Ghanaians and is calling on the government to reconsider its position.