Minority demands scrapping of GH¢1 fuel Levy, further cut in utility tariff
THE Minority in Parliament has called on the government to repeal the GH¢1 fuel levy to relieve Ghanaians of the increasing cost of fuel.
According to them, the addition of the levy to the price buildup in connection with recent happenings has placed an unbearable burden on Ghanaians already struggling with rising living costs.
Deputy Ranking Member of Parliament’s Energy Committee, Collins Adomako Mensah, made the call while addressing journalists in Parliament, arguing that the justification for the levy no longer exists.
He described its continuation as punitive rather than policy-driven and urged the government to move swiftly to repeal the Energy Sector Levy Amendment Act of 2025 under a certificate of urgency.
The Minority’s concerns come amid surging global fuel prices triggered by hostilities involving the United States, Israel, and Iran, as well as the closure of the Strait of Hormuz.
Analysts have projected that crude oil could reach between $110 and $120 per barrel if the conflict persists, potentially pushing petrol prices in Ghana to between GH¢15 and GH¢17 per litre.
As of the second pricing window of March 2026, diesel was selling at GH¢15.60 per litre, while petrol had exceeded GH¢12.40 per litre.
Mr Mensah noted that the levy, which adds GH¢1 to every litre of petroleum product, was originally introduced under the 2025 amendment to fund liquid fuel procurement and settle legacy debts in the energy sector.
He, however, argued that the fiscal rationale no longer applies.
Between January and December 2025, the government reportedly paid about $1.47 billion to stabilise the sector, including full repayment of the GH¢597 million World Bank partial risk guarantee and settlement of outstanding gas invoices.
“With the debts cleared, the so-called One Ghana Cedi Levy serves no purpose and should be repealed immediately,” he said.
In addition to the fuel levy, the Minority criticised the recent reductions in electricity and water tariffs announced by the Public Utilities Regulatory Commission (PURC), saying the cuts of 4.81 per cent and 3.06 per cent respectively, effective April 1, 2026, were insufficient to ease the financial burden on households and businesses.
Mr Mensah said analysis of PURC’s quarterly data for 2025 revealed consistent over-projections in both inflation and exchange rates, which affected tariff calculations and ultimately worked against consumers.
He cited, for instance, that the commission projected inflation at 22.49 per cent in the first two quarters against an actual average of 20.3 per cent and overestimated it by 9.67 points in the third quarter.
The Minority insisted that the ongoing increases in fuel and energy costs are squeezing households and businesses and that modest reductions do not provide meaningful relief.
They have therefore called on the government to consider deeper cuts of up to 10 per cent across electricity and water tariffs to cushion consumers amid global energy shocks.
Mr Mensah added that the Minority will also push for a comprehensive review of all taxes and levies embedded in fuel prices to identify opportunities to provide further relief to Ghanaians.
BY TIMES REPORTER
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