The Ministry of Energy and Green Transition has officially confirmed the suspension of the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), which was expected to introduce GH₵1 per litre on petrol and diesel, and 20 pesewas on liquefied petroleum gas (LPG).
The suspension, according to the Ministry, is a strategic move in response to sharp increases in global crude oil prices and a broader effort to protect consumers from escalating fuel costs.
The Ministry’s Spokesperson and Head of Communication, Richmond Rockson, confirmed the postponement and explained the rationale behind the decision.
“Yes, I can confirm that the government has postponed the implementation of Act 1141, which introduces GH₵1 on petrol, GH₵1 on diesel, and 20 pesewas on gas. This is in line with the directive issued by the Ghana Revenue Authority (GRA),” Rockson said.
He attributed the move to both domestic and international pressures including ongoing volatility in global oil markets, efforts to stabilise the cedi, and the government’s desire to avoid placing additional financial strain on Ghanaians.
“Since February, we’ve seen fuel prices drop from an average of GH₵17 to about GH₵11 or GH₵12, thanks to prudent management of the exchange rate. But recent events have reversed that trend,” he noted.
Rockson highlighted that in the past three days alone, international crude oil prices surged from $60 to $74 per barrel, the highest level recorded in five months largely due to heightened geopolitical tensions between Iran and Israel.
In response to these developments, President Mahama has instructed the Ministers of Energy and Finance to continue monitoring global trends and advise on the right time to implement the levy without harming consumer welfare.
“A new date will be announced when conditions are more favourable,” Rockson assured.
The Energy Sector Levy was projected to raise GH₵5.7 billion annually to help reduce Ghana’s $3 billion energy sector debt, but its introduction has faced strong pushback from civil society groups and consumers concerned about cost of living pressures.