Minority Demands Permanent Cancellation Of Fuel Levy

The Minority in Parliament is urging the government to permanently abandon the proposed fuel levy and instead pursue more sustainable and equitable strategies for raising revenue to address Ghana’s energy sector debt.

This call comes after the government postponed the implementation of the GHS1 per litre fuel levy, which was originally set to take effect on June 16, 2025.

Addressing the media, the Ranking Member of Parliament’s Economy Committee and MP for Ofoase Ayirebi criticized the taxation of petroleum products, describing it as an unsustainable revenue approach.

“As the Minority, we’re calling for the levy to be scrapped altogether—not just suspended,” he said. “The decision to delay its implementation confirms two key points: First, we had warned that it would drive up fuel prices. Second, it was misguided to assume international fuel prices would remain stable.”

He added that the suspension indicates a miscalculation on the part of the government. “While we await a full repeal, we urge the government to use this opportunity to launch a comprehensive review of the revenue system’s fairness and efficiency.”

The MP also highlighted that Ghana’s budget continues to suffer from revenue shortfalls, largely due to tax reductions that weren’t matched with corresponding spending cuts.

“Our revenue challenges persist. The GHS5.7 billion expected from this levy was intended to cover a nearly GHS6 billion budget gap—yet that deficit remains,” he cautioned.

The Minority maintains that the government must adopt more balanced and lasting solutions for raising revenue without placing additional burdens on fuel consumers.

Exit mobile version