Director of the International Monetary Fund’s (IMF) Communications Department, Julie Kozack, has welcomed the implementation of the Energy Sector Shortfall and Debt Repayment Levy that introduces a GHC1 fuel levy.

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At a press briefing, Julie Kozack noted that the country stands a better chance of addressing its energy sector crisis with the implementation of the levy.

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“On the fuel levy, what I can say is that this is a new measure that will help generate additional resources to tackle the challenges in Ghana’s energy sector, and it is also going to bolster Ghana’s ability to deliver on the fiscal objectives under the programme,” she said

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The Ghana Revenue Authority (GRA) has announced a delay of the implementation of the levy after strong opposition from oil marketing companies.

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The implementation of the levy has now been rescheduled to start on Monday, June 16, 2025.

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Initially set to take effect today, Monday, June 9, the new GHC1-per-litre levy faced great resistance from the Chamber of Oil Marketing Companies (COMAC), who voiced objections citing its suddenness and potential impact on fuel prices coupled with consumer burdens.

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During an appearance on Citi News, the Commissioner-General of the GRA, Anthony Kwasi Sarpong, confirmed that after discussions “in the spirit of cordiality and partnership,” a new implementation date of June 16 has been agreed upon.

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The levy is part of government measures to settle mounting debts in the energy sector, but industry players argue that they were not adequately consulted and that the rollout risks further destabilising the already volatile downstream petroleum market.

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Under the new levy:

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Motor Spirit (Super Petrol): from Ghc0.95 to Ghc1.95AGO/Diesel and Marine Gas Oil (Foreign): from Ghc0.93 to Ghc1.93Marine Gas Oil (Local): from Ghc0.03 to Ghc0.23Heavy Fuel Oil (Residual Fuel Oil – RFO): from Ghc0.04 to Ghc0.24Partially Refined Oil (Naphtha): from Ghc0.95 to Ghc1.95Liquefied Petroleum Gas (LPG) remains unchanged at Ghc0.73

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Products lifted by a Petroleum Product Marketing Company (PPMC) before June 16 will still be subject to the old levy rates.

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Any “cash-and-carry” transactions by PMMCs for which products are lifted on or after June 1, 2025, will be subject to the new rates.

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Energy and Green Transition Minister, John Abdulai Jinapor, has defended government's move despite opposition from some stakeholders in the energy sector.

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He noted that the timing of the introduction of the levy is apt as the cedi continues to appreciate against major trading currencies.

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The minister projects to generate revenue ranging between GH¢5 billion and GH¢6 billion to support the procurement of liquid fuel.

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Some stakeholders in the energy sector have expressed their displeasure over the approval of the Energy Sector Levy (Amendment) Bill, 2025, by Parliament and its pending implementation.

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On the matter, Chief Executive Officer of the Association of Oil Marketing Companies (AOMCs), Dr Riverson Oppong Peprah,warned that the implementation of the levy could drive fuel prices higher, adding further strain on consumers and the downstream sector.

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“When fuel prices began to fall, it wasn’t because the cedi gained stability; rather, it was due to a drop in plant prices caused by the decline in West Texas Intermediate (WTI) crude oil prices. Only after that did the cedi stabilise and support the downward trend."

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"As we speak today, plant prices are already rising again. So, I urge the government to reconsider this levy since there are other options," he counselled.

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