#ResettingGhana: Ghc4.50 New Tax On One Gallon of Fuel

Government has directed that from Monday June 16, 2025, there would be an additional tax of GH¢1 charged on every liter of petroleum products which rounds up to approximately GH¢ 4.50p as tax on each gallon of fuel. This directive, backed by a new law, is non-negotiable and not appealable despite grumblings from the public.

 The new additional tax on petroleum products was scheduled to have taken effect from today, Monday June 9 but the Ghana Revenue Authority (GRA) was compelled by mounting pressure and resistance from the oil marketing companies and relevant stakeholders to postpone implementation to next Monday.

The new tax is imposed on Ghanaians barely a month after Government increased electricity tariffs by14.75 percent and tariffs on water went up by 4.0 percent.

The controversial tax, known as the Energy Sector Amendment Levy was passed by Parliament late Tuesday night under a certificate of emergency. The Minority had walked out in protest. It was quickly signed into law by President John Mahama last Thursday June 5 to make it the Energy Sector Levy Amendment Act, 2025.

The GRA had issued a statement on Sunday night to say the implementation would start today but that drew a tensed disagreement from the Chamber of Oil Marketing Companies (COMAC) which issued a counter statement to threaten non-compliance.

The Chamber, in a letter directed to the Commissioner-General of the GRA said the “approach is neither lawful nor operationally feasible… Issuing a backdated directive on a holiday and serving it on a weekend for next-day compliance borders on institutional ambush.”

COMAC said it had directed all its members to ignore the directive until proper stakeholder consultations are held on the roll-out period and an agreement reached agreed.

“We therefore wish to state unequivocally: COMAC and its members cannot and will not begin implementation of this levy from Monday, 9th June…We are industry stakeholders, not bystanders, and we deserve better than Rambo-style directives in the middle of a weekend,” the COMAC statement noted.

MINORITY PROTESTS

Last Thursday, June 5, the same day on which President John Mahama assented to the new tax Bill to make it Law, the Minority in Parliament issued a statement to say the new tax would in-convenience Ghanaians.

“This one-cedi increase is not a minor inconvenience; it’s a significant blow to household budgets and businesses nationwide. Fuel is a fundamental input across all sectors, and this tax will ripple through the economy, exacerbating inflation and further eroding the purchasing power of Ghanaians,” the statement said.

It said Government’s justification that fuel prices have dropped being reasons for adding new levy is simplistic and misleading.

It explained further: “The international oil market is volatile and beyond the government’s control. Fluctuations in global oil prices directly impact fuel costs in Ghana. Blaming the energy crisis solely on Ghanaians and slapping them with this punitive tax is unfair and intellectually dishonest. In the unlikely event that fuel prices should go up, what will be the effect of this levy on Ghanaians?

“This levy follows a pattern of broken promises and deceit. The Minister for Transport recently convinced drivers to reduce transport fares by 15%, only to turn around and stab them in the back with this fuel levy. This, coupled with recent increases in electricity (14%) and water (3%) tariffs, demonstrates a clear disregard for the plight of ordinary Ghanaians. While the government conveniently removed the e-levy (which yielded only 2 billion cedis) and the insignificant bet levy, they’ve now effectively reintroduced them in full force through this backdoor tax.

The level of dishonesty and flip-flopping is eroding public confidence at an alarming rate. The government’s actions demonstrate a profound lack of sensitivity and understanding of the economic realities faced by Ghanaians. They are making promises they have no intention of keeping, and the people are paying the price.  Adding insult to injury, this bill was rammed through Parliament under a certificate of urgency with the speed of light, giving no consideration to divergent opinions or ideas.  This was a midnight robbery, passed under the cover of darkness while Ghanaians were sleeping.  This is not the leadership Ghanaians deserve; it’s the antithesis of good governance.  The term “Ato Didn’t Force” perfectly encapsulates the government’s approach: a forceful imposition of hardship without genuine consideration for the people.

“Furthermore, the government’s hypocrisy is glaring. While ordinary Ghanaians are expected to bear the brunt of this tax, there’s no mention of cancelling the free fuel provided to government appointees. Are they exempt from the pain they are inflicting on the rest of us? At least, the president and his appointees should have walked the talk by cancelling the free fuel for appointees so that we can trust them to feel for us. This blatant double standard is unacceptable. It reeks of a government content to watch the people suffer while they enjoy privileges.

“We call on the government to immediately withdraw or reduce this predatory levy and instead focus on genuine reforms to improve the efficiency and transparency of the energy sector. We demand answers, accountability, and a commitment to the well-being of all Ghanaians, not just the privileged few. This is not just about a one-cedi increase; it’s about the soul of our nation. We urge all Ghanaians to join us in opposing this unjust and economically devastating tax. Ato has forced D-levy on us,” the statement noted.