Government Suspends Implementation Of New Fuel Levy Until Further Notice
The Mahama led administration has suspended the implementation of the controversial new energy levy which was scheduled to take effect on 16th June 2025.
Yakubu Abdulbaaki 
The government of Ghana has suspended the implementation of the recently passed energy sector levy until further notice.
The Ghana Revenue Authority (GRA) confirmed the decision in a press release, stating that the suspension followed directives from the Ministry of Finance after consultations with key stakeholders.
The levy, approved by Parliament last week, proposed a charge of 1 cedi per litre on all petroleum products. It was intended to raise funds to tackle pressing challenges in the energy sector.
However, the decision has stirred public backlash, with the Minority in Parliament staging a walkout during the bill's passage. They described the levy as harsh and insensitive to the economic pressures faced by ordinary citizens. Transport unions and petroleum industry players also criticized the measure, warning of its inflationary impact.
Insider Explanation: Iran-Israel Conflict a Factor
Beyond public opposition, insider sources within government suggest the suspension is also tied to ongoing tensions in the Middle East, particularly the escalating Iran-Israel conflict.
Government officials fear that geopolitical instability could cause sharp fluctuations in global oil prices. Implementing a fuel levy during such a volatile period, insiders say, could backfire economically and politically.
“This is not just about public pressure—it’s about timing. The Iran-Israel situation is making oil markets unpredictable. Adding a tax now could spark even more public anger if prices surge,” one official told The Hub Web on condition of anonymity.
The Ministry of Finance is reportedly monitoring global developments and will reassess the levy depending on how the conflict evolves and impacts oil supply chains.
What’s Next
For now, consumers will not pay the additional charge at the pumps. The government has not announced a new date for implementation or whether the levy will be revised or scrapped entirely.
More consultations are expected in the coming weeks.
