Implementation Date for Fuel Levy to Be Determined Based on Favorable Economic Indicators

The Ministry of Energy and Green Transition has announced that the implementation of the new fuel levy under the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), will be delayed until market conditions become more favorable.

This decision follows a directive from President John Dramani Mahama, who instructed the Ministers of Energy and Finance to continue monitoring global economic and energy market trends before determining a new date for the rollout.

Confirming the update, Richmond Rockson, Public Relations Officer of the Ministry of Energy, emphasized that the government remains committed to protecting the recent progress made in reducing domestic fuel prices and does not intend to burden consumers during a period of economic strain.

“The President has directed the Ministers of Energy and Finance to keep monitoring the situation closely,” Rockson said. “Once the indicators show improvement, a new implementation date will be announced.”

The levy, which was initially scheduled to take effect on June 16, 2025, introduces an additional charge of GHS1 per litre on petrol and diesel, and 20 pesewas on liquefied petroleum gas (LPG). However, due to recent volatility in global oil markets, the rollout has been postponed.

“I can confirm that the government of Ghana, through the Ghana Revenue Authority (GRA), has postponed the implementation of the Energy Sector Levies (Amendment) Act, 2025,” Rockson stated. “This levy adds GHS1 on both petrol and diesel, and 20 pesewas on gas.”

He further explained that Ghana had experienced a temporary reprieve in fuel prices earlier this year, thanks to stable exchange rate management. From February 2025 until recently, fuel prices dropped significantly—from about GHS17 to between GHS11 and GHS12 per litre—providing relief to consumers.

However, this positive trend has been threatened by recent surges in global crude oil prices. Over the past three days, international prices jumped from $60 to $74 per barrel—a 23% increase—driven largely by escalating geopolitical tensions between Iran and Israel.

“In fact, in just three days, crude oil prices on the global market rose from $60 to $74 a barrel,” Rockson noted. “This is the highest level we’ve seen in the last five months, and it has started to disrupt some of our local fuel pricing structures.”

The Ministry emphasized that it is carefully evaluating both external and domestic conditions before proceeding with the levy. The goal, officials say, is to strike a balance between raising needed revenue for energy sector reforms and shielding citizens from excessive financial pressure.

The postponement reflects the government’s flexible approach in responding to real-time developments in the global energy market and its prioritization of affordability for the Ghanaian public.

Updates on the revised implementation date are expected in the coming weeks as the Ministries of Energy and Finance continue their assessments.