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GRA postpones implementation of controversial GH¢1 fuel levy

Implementation of the controversial GH₵1 per litre fuel tax delayed amid public backlash and stakeholder consultations

Kojo Emmanuel by Kojo Emmanuel
June 14, 2025
in Business, Main
0
GRA, fuel levy

GRA boss, Anthony Kwasi Sarpong

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The Ghana Revenue Authority (GRA) has announced the postponement of the controversial GH₵1 fuel levy, which was scheduled to take effect this month.

The decision comes amid growing public backlash and appeals from stakeholders within the transport, energy, and civil society sectors.

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Initially set to take effect on Monday, June 9, 2025, the revised implementation date for the GH₵1 per litre fuel tax is now Monday, June 16, 2025.

But the GRA has postponed the rollout of Tariff Interpretation Order (TIO) No. 2025/004, which relates to the Energy Sector Levies (Amendment) Act, 2025 (Act 1141).

The levy, intended as part of a broader strategy to improve revenue mobilisation would have added an extra GH₵1 to the price per litre of petrol and diesel at the pump.

However, the GRA, in a statement said the decision to delay the implementation was based on the need for further stakeholder consultations and to address concerns raised about the potential impact on transportation costs and inflation.

The suspension follows a directive from the Minister of Finance after consultations with key stakeholders.

The order, which included a planned increase in the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) on selected petroleum products, was initially set to take effect on June 16, 2025. It has now been deferred until further notice.

Commissioner-General of the GRA, Anthony Kwasi Sarpong confirmed the decision in a directive dated June 13, 2025, assuring that a new implementation date will be announced later.

The fuel levy comes under the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), which aims to generate revenue to address energy sector shortfalls, reduce legacy debts, and help stabilise Ghana’s power supply.

As outlined in Tariff Interpretation Order (TIO) No. 2025/003, issued by Commissioner-General Anthony Kwasi Sarpong, the revised levy structure impacts several key fuel products:

  • Petrol (Motor Spirit, Super): Increases from GH₵0.95 to GH₵1.95 per litre
  • Diesel (Gas Oil): Increases from GH₵0.93 to GH₵1.93 per litre
  • Marine Gas Oil and Heavy Fuel Oil: Will also see corresponding price increases
  • LPG (Liquefied Petroleum Gas): Remains unchanged at GH₵0.73 per litre

The new fuel tax in Ghana is expected to raise significant funds to support the country’s struggling energy sector, despite public and industry concerns about the timing and economic impact.

Transport unions had threatened a nationwide strike over the proposed levy, citing the already high cost of fuel and the burden it places on both commercial drivers and consumers.

Civil society organisations also warned that the timing of the levy could worsen the cost-of-living crisis and erode public trust in tax policies.

Economists have expressed mixed views on the levy. While some agree that expanding the tax net is necessary to reduce Ghana’s fiscal deficit, others argued that such measures must be introduced more cautiously and transparently.

Post Views: 359
Tags: Energy Sector Levy (Amendment) BillFuelFuel levyGhana Revenue Authority
Kojo Emmanuel

Kojo Emmanuel

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