A clash between the Ghana Revenue Authority (GRA) and the Chamber of Oil Marketing Companies (COMAC) over the implementation date of the new GH¢1 fuel tax has ended in a compromise, with the tax now set to take effect from Monday, June 16, 2025.
The dispute erupted after the GRA directed oil marketing companies to begin enforcing the Energy Sector Shortfall and Debt Repayment Levy on Monday, June 9, under the Energy Sector Levies (Amendment) Act, 2025 (Act 1141).
However, COMAC swiftly rejected the directive, citing inadequate notice and lack of stakeholder consultation. They proposed June 16, 2025, instead as a more practical implementation date.
COMAC pushes back on sudden rollout
COMAC, the umbrella body for fuel marketing firms in the country, raised strong objections to the June 9 start date, describing it as abrupt and disruptive.
The Chamber insisted that its members needed more time to update their systems and communicate the changes effectively to consumers and partners.
“We had not been given adequate time to prepare,” a senior official from COMAC noted.
“Implementing a levy of this nature requires backend adjustments, public education, and logistical coordination to ensure smooth execution.”
Following high-level consultations involving the Ministry of Energy and Green Transition, the Ministry of Finance, the National Petroleum Authority, and the GRA, the parties agreed to revise the implementation date.
New implementation date: June 16
A statement signed by COMAC Coordinator Dr. Riverson Oppong confirmed the new rollout date, hailing the agreement as a testament to the value of dialogue and stakeholder engagement.
“We are pleased to announce our alignment and satisfaction with the revised implementation date for the new Energy Sector Shortfall and Debt Repayment Levy (ESSDRL),” the statement read.
“The new effective date is now confirmed as Monday, 16th June 2025, replacing the initially communicated date of 9th June 2025.”
The Chamber commended the ministries and government agencies for what it called a “constructive and collaborative” process that respected industry concerns.
GRA defends the urgency of levy
Despite the consensus reached, the GRA earlier stood by its original directive. In Tariff Interpretation Order (TIO) No. 2025/003, the Commissioner-General, Anthony Kwasi Sarpong, stated that the levy was backed by law and essential for the financial stabilization of Ghana’s energy sector.
Under the amended Energy Sector Levies Act, the GH¢1 Energy Sector Shortfall and Debt Repayment Levy will be imposed on every litre of petrol and diesel.
The GH¢1 fuel tax on petrol (motor spirit, super) and diesel (gas oil) will rise from GH¢0.95 and GH¢0.93 respectively to GH¢1.95 and GH¢1.93 per litre.
Other petroleum products affected include marine gas oil and heavy fuel oil, while liquefied petroleum gas (LPG) will remain at GH¢0.73 per kilogramme.
The GRA emphasised that only petroleum products lifted on or after the effective date will attract the new levy. Products lifted before June 9 will continue to be charged under the previous rates.
Govt justifies new Tax
The government has defended the GH¢1 fuel tax as necessary to address critical deficits in the energy sector, especially those stemming from legacy debts and shortfalls in the power sector.
A Ministry of Finance official explained that the levy is part of a broader fiscal strategy to stabilise power supply, improve liquidity for energy providers, and wean the sector off unsustainable subsidies.
“The proceeds from this levy will go directly into paying down energy sector debts and ensuring we have a reliable and efficient energy system,” the official stated.
Consumer concerns mount
As implementation day approaches, fuel consumers are bracing for an increase in pump prices. Already battling rising living costs, many Ghanaians view the new tax as an added burden.
Transport operators and trade unions have warned that the levy could trigger fare hikes and inflationary pressures, potentially worsening the cost-of-living crisis.
Meanwhile, civil society groups have urged the government to demonstrate transparency in the use of the levy, demanding regular reporting on how the funds are applied.
A lesson in engagement
While the revised start date has diffused immediate tensions, the episode has sparked broader questions about policy communication and stakeholder involvement.
Industry analysts say the confusion over the tax rollout highlights the need for early engagement and comprehensive planning when introducing new fiscal measures.
The successful implementation of the GH¢1 Energy Sector Levy now rests on effective coordination between government institutions, oil marketing companies, and the public — a test of both leadership and accountability.
