Fuel levy implementation deferred over Israel-Iran tensions – Energy Ministry
The Energy Ministry has said the delay in the roll out of the controversial fuel levy is due to a sharp rise in global oil prices, driven by renewed tensions between Israel and Iran
The Energy Ministry has said the delay in the roll out of the controversial fuel levy is due to a sharp rise in global oil prices, driven by renewed tensions between Israel and Iran.
The Energy Sector Levies (Amendment) Act, 2025—approved by Parliament earlier this year—was expected to add GHC1 to every litre of petrol and diesel and impose an additional 20 pesewas on liquefied petroleum gas (LPG).
But the Ministry of Energy and Green Transition says the levy’s rollout has been put on hold.
Richmond Rockson, spokesperson for the Ministry, confirmed the development during an interview on Accra-based ChannelOneTV.
“I can confirm that the government of Ghana, through the Ghana Revenue Authority, has postponed the implementation of the levy,” Mr Rockson said. “The current economic conditions, particularly on the global oil market, make it necessary to delay.”
Geopolitics and price shocks
In the past 72 hours, global crude oil prices have surged from $60 to $74 per barrel—the highest level in five months.
The Energy Ministry attributes the sudden spike to the escalating conflict in the Middle East, where Israel and Iran are locked in a tense military standoff.
“The recent geopolitical tensions have destabilised the oil market,” Mr Rockson explained. “This comes just as Ghanaian consumers had begun to enjoy relief at the pumps.”
Over the last few months, fuel prices in Ghana have declined significantly—falling from GHC17 per litre to around GHC11–GHC12, depending on the oil marketing company. The ministry credits this decline to what it describes as “prudent management” of the cedi-to-dollar exchange rate.
A calculated delay?
The government insists the delay in rolling out the fuel levy is part of a broader strategy to cushion consumers from further economic shocks.
President John Mahama has instructed the Ministers for Energy and Finance to continue monitoring the situation.
“As and when the conditions become favourable,” Mr Rockson noted, “a new date for the implementation will be announced.”
Ghana’s fuel pricing regime is heavily influenced by global oil trends, exchange rate fluctuations, and domestic levies.
The planned levy was introduced as part of efforts to reduce the country’s energy sector debt and support the transition to cleaner energy sources.
But with tensions in the Middle East showing no signs of easing, Ghanaians may have to wait longer before feeling the full impact of the new policy.
