President John Dramani Mahama has directed the Ministers for Finance and Energy, Dr Cassiel Ato Forson and John Abdulai Jinapor, respectively, to closely monitor the unfolding conflict between Israel and Iran and provide proactive measures to safeguard the country’s recent economic gains from external shocks.

The escalating missile exchanges between Israel and Iran are contributing to rising global crude oil prices, posing a potential threat to Ghana’s fuel costs and overall economic stability.

“I have instructed the Ministers of Finance and Energy to keep a close eye on the developments and model the possible impact on our petroleum prices. They must prepare appropriate measures to safeguard the gains we’ve made,” the president said during his Thank-You Tour of the Savannah Region on Saturday, June 14.

Iran and Israel exchanged missiles during Saturday night and early on Sunday, marking the third consecutive day of attacks between the two countries after Israel initially attacked Iran on Friday morning.

The surge in crude oil prices on the international market has prompted the government to indefinitely suspend the Energy Sector Levies (Amendment) Act, 2025.

Richmond Rockson, spokesperson and head of Communication at the Ministry of Energy and Green Transition, who confirmed the suspension of the amended act, said, “In fact, the last three days, if you check crude oil prices on the international market, it moved from $60 to $74, and this is the highest we’ve seen in the past five months. This has also caused some disruptions in our pricing module."

The implementation of the GHC1 fuel levy was rescheduled to start on Monday, June 16, a new timeline provided after June 9.

In a press statement, the Ghana Revenue Authority (GRA) also noted that the increase in the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) for selected petroleum products, which would have had to take effect from the 16th of June 2025, has been postponed.

The Minority Caucus in Parliament has described as a “shameful retreat” the indefinite suspension of the levy by the Ghana Revenue Authority (GRA).

In a statement issued on Sunday, June 15, the Minority condemned the decision to postpone, asserting that it is evidence of the government’s “chaotic and inconsistent approach to economic governance.”

“This eleventh-hour U-turn epitomises a trial-and-error strategy and reveals a disturbing lack of stakeholder engagement prior to the passage of the law,” the statement read.

The new GHC1-per-litre levy has 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.

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

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

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.

However, 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.

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.

“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.