GHANA WEATHER

Minority demands immediate reversal of GH₵1 fuel levy

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By Valentia Tetteh

The Minority in Parliament has criticised the government’s newly introduced GH₵1 Energy Sector Recovery Levy, branding it the highest fuel tax rate in Ghana’s history and demanding its immediate withdrawal.

The levy, which translates to an 8% surcharge on every fuel purchase, was condemned by Ranking Members on Parliament’s Energy and Economy Committees, George Kwame Aboagye and Kojo Oppong Nkrumah, during a press briefing on Monday.

According to the Minority, the tax, dubbed the “Dumsor Levy”, was passed late at night without public notice or proper legislative debate. They claim it was smuggled onto the Order Paper as an addendum and rushed through under a certificate of urgency, effectively bypassing standard parliamentary procedures.

“This bill was never advertised on the Order Paper for the day. It was sneaked through Parliament late,” said Mr Aboagye.

He further questioned conflicting government justifications for the levy. He said while President Mahama told attendees at the Africa CEO Summit in Abidjan that the levy would help clear energy sector debts, other officials, including John Jinapor, claimed it would be used to purchase fuel.

“So which is which? Is this levy to pay off debt or to buy fuel?” Aboagye asked.

Kojo Oppong Nkrumah added that the levy imposes a real burden on consumers, calculating it as GH₵4.50 per gallon of fuel. He criticised the current administration for contradicting its past stance on taxation.

“When the NPP introduced the e-levy, our colleagues in opposition called it thievery,” he said. “Now they’re charging 8% on every gallon, with no exemptions, not even for the poor.”

The Minority caucus proposed alternative solutions to the energy sector’s financial challenges, such as renegotiating power purchase agreements, improving efficiency at GRIDCo and ECG, and investing in renewable energy as outlined in the NPP’s 2024 manifesto.

They also announced plans to mobilise civil society organisations, transport unions, and the broader public in a national campaign against the levy.

“We will stand with the honest Ghanaians, driver unions, and Oil Marketing Companies who are already speaking out against this excessive taxation,” they vowed.

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