Collins Adomako Mensah
The Minority in Parliament has intensified calls for the immediate removal of the one Ghana cedi fuel levy, warning that surging global oil prices and mounting domestic pressures are pushing Ghanaians to the brink.
Addressing journalists in Parliament yesterday, the Deputy Ranking Member on the Energy Committee, Collins Adomako Mensah, argued that the levy, which was introduced under the Energy Sector Levy (Amendment) Act, 2025, is no longer justifiable given current economic realities.
He maintained that the tax has become an added burden on households already grappling with rising living costs.
According to him, the levy, which was passed under a certificate of urgency in June 2025, was initially defended by the government as a necessary tool to finance liquid fuel procurement and address legacy debts in the energy sector.
At the time, the Finance Minister assured Parliament that gains from a strong cedi would absorb the impact and shield consumers from price increases.
However, the Minority insists those assurances have collapsed in the face of global developments, particularly the ongoing conflict involving the United States, Israel and Iran, as well as the closure of the Strait of Hormuz, which has disrupted global oil supply chains and driven crude prices sharply upward.
Citing projections by the Chamber of Oil Marketing Companies, Mr. Adomako Mensah warned that petrol prices could rise by nearly 17 percent and diesel by over 17 percent in the next pricing window.
Crude oil prices have already surged from about $71 per barrel to over $100 in mid-March, with analysts cautioning that prices could climb as high as $120 if tensions persist.
He noted that current pump prices, about GH¢15.60 per litre for diesel and over GH¢12.40 for petrol, could rise further to between GH¢15 and GH¢17 per litre, which would worsen the economic strain on consumers.
“The justification for the GH¢1 levy has completely evaporated,” he said, adding that retaining it under current conditions amounts to “punishment, not policy.”
The Minority is therefore demanding that the government urgently lay before Parliament a bill to repeal the levy under a certificate of urgency.
They also called for a comprehensive review of all taxes embedded in the petroleum price build-up to identify those that can be suspended to cushion consumers.
Beyond fuel prices, the Minority is pressing for a steeper reduction in utility tariffs. While the Public Utilities Regulatory Commission (PURC) recently announced a combined reduction of about five percent in electricity and water tariffs effective April 1, 2026, the Minority argues that the cut falls short of expectations.
They advocated a reduction of up to 10 percent, citing what they described as consistent over-projections in inflation and exchange rate assumptions by the PURC, which they claim have historically worked against consumers.
The caucus also raised concerns over delays in the publication of an investigative report into the rapid depletion of prepaid electricity credits by the Electricity Company of Ghana (ECG).
Despite a directive issued by the Minister for Energy and Green Transition on February 25, 2026, for a report within seven days, the findings remain undisclosed more than three weeks later, Mr. Adomako Mensah said.
The Minority warned that the recurring issues of unexplained credit depletion, coupled with delayed accountability, risk eroding public confidence in the country’s energy management systems.
By Ernest Kofi Adu, Parliament House