GRA Pushes Back GH¢1 Fuel Levy Launch to Mid-June

The Ghana Revenue Authority (GRA) has officially postponed the rollout of a controversial new fuel levy by one week, following pushback from oil marketing companies and broader concerns about the policy’s timing and economic impact. Initially set to take effect on Monday, June 9, 2025, the new levy will now be implemented on Sunday, June 16.

The levy, part of the government’s Energy Sector Shortfall and Debt Recovery Programme, introduces an additional GH¢1 per litre on various petroleum products. It aims to help reduce Ghana’s ballooning energy sector debt, but industry stakeholders say they were caught off guard and not adequately consulted prior to the announcement.

Speaking to Citi News, the GRA acknowledged that it had received formal objections from the Chamber of Oil Marketing Companies (COaMC), who raised serious concerns about the abrupt nature of the policy’s rollout. According to the GRA, the decision to delay was made “in the spirit of cordiality and partnership” following dialogue with industry leaders.

“The Association has concerns with the 9 June implementation date. We have discussed with their leadership in the spirit of cordiality and partnership and have agreed a new start date of 16 June,” the GRA stated.

Industry Concerns and Market Stability

Oil marketing companies have warned that the new levy could exacerbate price instability in the petroleum sector, particularly at a time when global fuel markets remain volatile. They also criticised the lack of stakeholder engagement in the lead-up to the policy announcement.

The Chamber of Oil Marketing Companies argued that the sudden increase in levies would translate into higher fuel prices at the pump, burdening consumers and potentially increasing inflationary pressures. They further noted that the change could disrupt planning cycles for petroleum product distributors, many of whom had not accounted for the additional levy in their June supply forecasts.

Revised Levy Structure

According to the GRA’s revised directive, the updated levy rates will now apply to all petroleum products not lifted before June 16, 2025. The specific changes in levies are as follows:

Motor Spirit (Super Petrol): Increased from GH¢0.95 to GH¢1.95
Automotive Gas Oil (Diesel) and Marine Gas Oil (Foreign): Increased from GH¢0.93 to GH¢1.93
Marine Gas Oil (Local): Increased from GH¢0.03 to GH¢0.23
Heavy Fuel Oil (Residual Fuel Oil – RFO): Increased from GH¢0.04 to GH¢0.24
Partially Refined Oil (Naphtha): Increased from GH¢0.95 to GH¢1.95
Liquefied Petroleum Gas (LPG): Remains unchanged at GH¢0.73

These new charges are intended to apply only to fuel lifted on or after the new implementation date.

Transitional Measures

To ensure a smooth transition and avoid penalising companies that had already made procurement arrangements, the GRA outlined a set of transitional measures:

Products lifted by Petroleum Product Marketing Companies (PPMCs) before June 16 will continue to attract the old levy rates.
For cash-and-carry transactions conducted on or after June 1, if the fuel is lifted on or after June 16, the new levy rates will apply.

Commissioner-General of the GRA, Anthony Kwasi Sarpong, signed the directive and has called on all relevant agencies, including port authorities and fuel distribution centres, to fully enforce the new timelines and levy adjustments.

Outlook

While the GRA has expressed its willingness to cooperate with industry players, the short timeline and lack of prior consultation have left many in the sector uneasy. Analysts warn that although the measure could help shore up public finances, the risk of price hikes and inflation cannot be ignored, particularly as the cost of living continues to weigh heavily on households.

As the new implementation date approaches, attention will remain focused on how both the government and industry stakeholders navigate the levy’s rollout and its broader economic implications.