The Coalition of Commercial Transport Operators has threatened to increase transport fares by 30% should the government proceed with its GH¢1.00 per litre fuel levy.

The implementation of the new GHS1 Energy Sector Shortfall and Debt Repayment Levy on petroleum products commences on Wednesday, July 16.

Speaking to the media on Monday, July 14, the Chairman of the Ghana Committed Drivers Association, Charles Danso, emphasized that the fare increase will take effect on Wednesday, July 16.

According to him, this will ensure that the cost of the tax is distributed between drivers and commuters.

The association has described the levy as “reckless and retrogressive,” intended to derail their business.

“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 Ghana Revenue Authority (GRA)has directed all petroleum sector stakeholders to comply strictly with the new rates.

This move comes under the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), which was assented to by President John Dramani Mahama on June 5 to settle energy sector shortfalls, reduce legacy debts, and stabilize power supply across the country, following parliamentary approval.

GRA had announced earlier implementation of the levy; however, it was postponed after strong opposition from oil marketing companies.

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 0.04.

Petroleum products lifted before June 9, 2025, will be charged the old levy rates.

However, all cash-and-carry transactions where products are lifted on or after the effective date will attract the revised levies.

The government insists the levy is crucial for the financial recovery of Ghana’s energy sector. President John Mahama, while speaking at the presentation of the final report of the National Economic Dialogue 2025 on June 4, announced the government's decision to clear the accumulated legacy debts in the power sector with part of the revenue generated by the yet-to-be-implemented levy.

He stated that "initially much of this revenue will go to the purchasing of fuel to ensure stable power of electricity."

The government will also reduce the use of liquid fuel in the energy mix as it expects more gas from the ENI, Sankofa, Jubilee and TEN fields, as well as the West African Gas Pipeline.

"At that stage, the resources generated by this increased levy will be channeled to pay accumulated legacy debts in the power sector," he added.

He assured Ghanaians that funds generated from the newly approved GHC1 fuel levy will undergo regular audits. He explained the move is to ensure accountability and transparency.

"Funds from this levy will not be subject to the hazards of the Consolidated Fund. The fund will be regularly audited and audit reports made public to ensure its transparent use."

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

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

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

"Fuel was around GH¢16.00, and a sensitive government will not slap a tax when fuel is GH¢16.00. You couldn't have imposed that tax around that time when fuel was still very high, and so you needed to work to bring fuel down to this level and share the gain with Ghanaians. At that time, if we had increased it, you can imagine the impact on Ghanaians, but today, the net effect is that you are still having a reduction of GH¢3.00 on a litre of fuel," he explained.

"It is better to do it today than to (have done) it yesterday, when it would have eroded your income; today, your purchasing power has increased because of the reduction of the value of the dollar," he said while speaking on JoyFM.

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.

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.

“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.”