The parliamentary Minority is urging the government to abolish a 1 cedi-per-litre fuel levy, warning it is worsening the cost-of-living crisis for citizens.
The call was made in Parliament by Hon. Collins Adomako Mensah, Deputy Ranking Member on the Energy Committee, who described the levy as unjustified and punitive.
Hon. Mensah said the government should urgently repeal the Energy Sector Levy Amendment Act of 2025, arguing that the policy’s original purpose has expired.
The demand comes as fuel prices surge, driven by escalating geopolitical tensions involving the United States, Israel and Iran, alongside disruptions to global oil supply routes such as the Strait of Hormuz.
Analysts warn crude oil prices could climb to between $110 and $120 per barrel if the conflict persists, pushing petrol prices in Ghana as high as GH₵17 per litre.
As of March 2026, diesel prices have reached about GH₵15.60 per litre, while petrol has risen above GH₵12.40, intensifying pressure on households and businesses.
Hon. Mensah noted the levy was initially introduced to finance fuel procurement and settle legacy energy sector debts, but said those obligations have largely been cleared.
He cited government payments of roughly $1.47 billion in 2025, including settling World Bank-backed guarantees and outstanding gas invoices, as evidence the fiscal need no longer exists.
The Minority is also demanding a broader review of all fuel-related taxes, arguing that cumulative levies are inflating pump prices and deepening economic hardship.
The opposition insists swift action is needed to ease the burden on consumers, warning that failure to act could heighten public discontent amid ongoing global market volatility.