Energy Ministry Cites Rising Crude Oil Prices on Israel-Iran Geopolitical Tensions for Suspension of GHS 1 Fuel Levy
The Ministry of Energy and Green Transition has confirmed the postponement of the implementation of the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), which would have introduced new fuel-related taxes, citing recent volatility in global oil prices.
The Act, which was scheduled to take effect this month, would have added GH₵1 per litre on both petrol and diesel, and an additional 20 pesewas on liquefied petroleum gas (LPG).
Speaking in an interview on Saturday, June 14, the Spokesperson and Head of Communication at the Ministry, Richmond Rockson, said the decision to delay the rollout of the amended levy was influenced by the current surge in international crude oil prices.
“I can confirm that the government of Ghana, as issued by the GRA, has postponed the implementation of the Energy Sector Levies (Amendment) Act, 2025 (Act 1141). This levy is what has introduced GH₵1 on petrol, GH₵1 on diesel, and 20 pesewas on gas,” Mr Rockson stated.
He explained that although the local market had recently benefited from declining fuel prices—largely attributed to relative exchange rate stability—recent geopolitical developments have reversed the trend.
“From February till date, a windfall was experienced on the fuel market as a result of the prudent management of the exchange rates, which has brought fuel prices from an average of GH₵17 to an average of GH₵11 or GH₵12, depending on which Oil Marketing Company (OMC) you buy from,” he noted.
Mr Rockson further disclosed that within the last 72 hours, global crude oil prices surged significantly due to tensions between Israel and Iran, rising from $60 to $74 per barrel—marking the highest level in five months.
“This has caused some disruptions in our pricing module,” he said, stressing that implementing the new levies under such conditions could impose an undue burden on consumers.
He added that President John Mahama has directed the Ministries of Energy and Finance to continuously monitor developments in the global oil market.
“The President has directed the Ministers of Energy and Finance to keep monitoring the situation. So, they will keep monitoring, and as and when the factors look favorable, definitely, a new date will be announced,” Mr Rockson concluded.
