GRA to Implement New Energy Sector Levies from July 16 as Prices Double on Some Fuel Products

The Ghana Revenue Authority (GRA) has officially announced the commencement of the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), which is set to take effect from Tuesday, July 16, 2025. This follows a one-month postponement earlier communicated in June to allow for further consultations with the Ministry of Finance and Ministry of Energy.

According to a GRA circular dated July 1, 2025, the implementation of the amended levies is part of government’s broader strategy to stabilise economic conditions and monitor global market trends. The new rates, under the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL), show significant hikes across various petroleum products.

Key Adjustments to Energy Levies

The revised levy rates, effective July 16, 2025, reflect substantial increases compared to the previous rates:

The most notable changes include an approximate 105% increase in the levy on petrol and diesel, while levies on marine gas oil and heavy fuel oil have seen up to sixfold hikes in some cases.

Implications for Businesses and Consumers

This move is expected to have a ripple effect on fuel prices, potentially leading to an increase in transportation and production costs across sectors. While the GRA has emphasised the need to “safeguard recent gains in domestic pump prices,” the upward adjustment may exert inflationary pressure in the short term.

Transport operators, manufacturing firms, and logistics companies, key users of diesel and heavy fuel oil, are likely to bear the brunt of the new levies. Similarly, consumers may experience price hikes on goods and services if the increases are passed down the value chain.

Government’s Position

The GRA notes that the decision was made after a “thorough review of prevailing market indicators” and is in line with the government’s commitment to ensuring stable economic conditions. The Energy Sector Levies were initially introduced to help address legacy debts and inefficiencies in the energy sector.

This implementation comes at a time when the country is balancing fiscal consolidation efforts with the need to support ongoing energy reforms and improve liquidity within the sector.

Businesses are advised to prepare for the new rates and factor them into their mid-year operational planning.

Read More