President Mahama suspends GH₵1 fuel levy indefinitely

The government has suspended the implementation of the GH₵1 levy on every litre of petrol and diesel until further notice. The levy, which was expected to take effect on Monday, June 16, 2025, has been postponed indefinitely.

This announcement was made by Richmond Rockson, Esq., spokesperson and head of communications at the Ministry of Energy and Green Transition. In a post on Saturday, June 14, he explained that the decision followed consultations with key stakeholders.

“The implementation date for the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), which would have taken effect from Monday, 16th of June 2025, has been postponed after consultations with stakeholders. A new effective date will be communicated in due course,” Rockson stated.

The Ghana Revenue Authority (GRA) also issued a separate notice on Friday, June 13, confirming that the operationalisation of the levy has been put on hold. The GRA cited the need for additional technical and operational preparations and said a new date would be announced later.

The GH₵1 Energy Sector Recovery Levy was introduced through amendments to the Energy Sector Levies Act. It was projected to raise GH₵5.7 billion annually to help pay down Ghana’s energy sector debt, which exceeds $3 billion. The funds were also meant to support stable fuel supply for power generation.

Despite the levy’s intended benefits, it faced strong backlash from the public, including transport unions and civil society organisations. Many criticised the move, saying it would worsen the economic burden on Ghanaians already dealing with high fuel prices and a rising cost of living.

With the suspension in place, stakeholders are now waiting for guidance from the Ministry of Finance and the Ministry of Energy on the next steps and a possible new date for implementation.