Government’s new GHS1 Energy Sector Shortfall and Debt Repayment Levy on petroleum products will be implemented by the Ghana Revenue Authority (GRA) today, Wednesday, July 16.

This move is to settle energy sector shortfalls, reduce legacy debts, and stabilize power supply across the country, following parliamentary approval.

President John Dramani Mahama assented to the levy on June 5, under the Energy Sector Levies (Amendment) Act, 2025 (Act 1141). GRA had announced earlier implementation of the levy; however, it was postponed after strong opposition from oil marketing companies and transport operators.

Initially set to take effect on Monday, June 9, it was rescheduled to start on Monday, June 16. It was then rescheduled again due to the tensions between Iran and Israel.

According to Tariff Interpretation Order (TIO) No. 2025/003, issued by the GRA, the new levy affects several key fuel products. The levy on petrol (motor spirit, super) and diesel (gas oil) will rise from GHS0.95 and GHS0.93, respectively, to GHS1.95 and GHS1.93 per litre.

Marine gas oil (local) will increase from 0.3 to 0.23, marine gas oil (foreign) from 0.93 to 1.93, and heavy fuel oil by 0.04. However, all cash-and-carry transactions where products are lifted on or after the effective date will attract the revised levies.

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

“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."

"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.

Also, Executive Director of the Centre for Environment and Sustainable Energy Benjamin Nsiah has raised similar concerns, calling the introduction of the levy "unfair."

“This approach is not only tired but unfair,” Nsiah said. “We’ve seen this playbook before. The Energy Sector Levies Act (ESLA), and the Energy Sector Recovery Levy have provided a lasting solution to the underlying issues. It’s not about collecting more. It’s about managing what’s already collected.”

The Coalition of Commercial Transport Operators has described the levy as “reckless and retrogressive,” intended to derail their business.

Speaking to the media on Monday, July 14, the chairman of the Ghana Committed Drivers Association, Charles Danso, revealed the association's plans of sharing the cost of the tax between drivers and commuters.

As such, transport fares will be increased by 30% should the government proceed with its GH¢1.00 per litre fuel levy.

“This is not just a GH¢1 tax. We are already paying a 17.2% tax component on electricity, which includes drivers. Now the government wants to impose another levy on fuel—it’s unbearable.

“If the government refuses to listen to us, we will have no option but to pass the cost onto commuters by increasing fares by 30%,” he said.

Meanwhile, the Chamber of Oil Marketing Companies (COMAC) has hinted that fuel prices are likely to increase regardless of the GHC1 tax.

Engaging the media, Chief Executive Officer (CEO) of COMAC, Dr. Riverson Oppong, on Tuesday, July 15, noted that the next pricing window will see petrol and diesel prices rise by 8% to 10%.