Consumers Spared a Possible Fuel Price Hike Today as Gov’t Pulls back on GH₵1 Levy Due to Israel-Iran Tension

Today, June 16, would have marked the start of the controversial GH₵1 per litre Energy Sector Levy, but thanks to a last-minute government decision, motorists and households will not face any price hikes at the pumps, at least for now.

Originally, from June 16, petrol and diesel prices would have gone up by GH₵1 per litre, while LPG would have seen a 20 pesewa increase. Oil marketing companies had already begun reconfiguring their pricing templates in anticipation.

However, following the government’s U-turn, fuel prices remain unchanged, easing fears of a knock-on effect on transport fares, food prices, and inflation.

The government, over the weekend, confirmed that it made the latest U-turn on the GH₵ 1 Energy Sector levy due to the escalating geopolitical tensions resulting in the soaring of crude prices on the international market.

The government, through the Ghana Revenue Authority (GRA), on Saturday suspended the implementation of the GH₵1 per litre Energy Sector Levy, which was scheduled to hit the pumps in the next two days.

Although the GRA notice failed to attribute reasons for the pullback, the Ministry of Energy and Green Transition is now citing global geopolitical tensions and surging crude oil prices as major concerns.

This confirmation came from the Head of Communications at the Ministry of Energy, Richmond Rockson, in an interview with Channel One TV following growing uncertainty after the GRA’s announcement.

The suspended levy, part of the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), was set to impose an additional GH₵1 on petrol and diesel and 20 pesewas on liquefied petroleum gas (LPG). It aimed to raise critical revenue to support the government’s energy debt obligations. However, concerns about its timing amid rising global oil prices and ongoing tensions in the Middle East have forced the government to reconsider.

“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. This levy is what has introduced GH₵1 on petrol, GH₵1 on diesel, and 20 pesewas on gas. So, yes, I can give you that confirmation,” Rockson said in an interview.

He pointed to recent spikes in international crude oil prices as a trigger for the decision.

“In fact, in the last three days, if you check crude oil prices on the international market, it moved from $60 to $74, which is the highest we’ve seen in the past five months. This has also caused some disruptions in our pricing module,” he explained.

The government has also acknowledged that despite global pressures, local fuel prices have seen a downward trend over recent months, thanks in part to better exchange rate management.

“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 GH₵11 or GH₵12,” Rockson noted.

Due to the latest developments, President John Dramani Mahama has directed the Ministers of Energy and Finance to closely monitor the global situation before deciding on a new implementation date for the levy.

“As and when the factors look favourable, definitely, a new date will be announced,” Rockson added.

The suspension of the levy comes as good news and a relief to consumers and industry players, many of whom feared an imminent rise in pump prices that could derail recent economic gains and push up the cost of living.

For many industry analysts and players, the government’s swift move reflects a balancing act between raising domestic revenue and protecting Ghanaians from external shocks. The government appears to have chosen cushioning its citizens over pressing ahead with tax measures in turbulent times, at least for now.

The relief, however, will be short-lived should the rising prices of crude oil on the international market continue. Ghanaians will escape an increase driven by the levy, but cannot escape a hike in pump prices propelled by rising international crude prices.

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