Minority in Parliament Condemns GH¢1 Fuel Levy as “Predatory Tax” — Demands Transparency and Immediate Withdrawal

The Minority in Parliament has unleashed a fierce condemnation of the newly passed Energy Sector Levy (Amendment) Bill, 2025, describing the GH¢1 levy on petroleum products as a “predatory tax” that will siphon off an estimated GH¢5.7 billion annually from Ghanaians.

At a press conference held today, Minority Chief Whip Frank Annoh-Dompreh detailed the dire economic impact of the levy, which they say will extract approximately GH¢475 million every month from the public, with no clear plan from the government on how the funds will be used.

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“This is not a minor inconvenience,” Annoh-Dompreh emphasized. “It’s a significant blow to household budgets and businesses nationwide. Fuel is a fundamental input across all sectors, and this tax will ripple through the economy, exacerbating inflation and further eroding the purchasing power of Ghanaians.”

The Minority’s biggest grievance is the government’s lack of transparency. According to them, the bill offers no timelines, no disbursement plan, and no clarity on how the GH¢5.7 billion collected will be allocated.

“What are the clear timelines for the collection and disbursement of these funds?” the Minority Caucus demanded. “The bill is shrouded in secrecy, lacking any clear guidance on its utilisation. This is unacceptable.”

The Minority also accused the government of betrayal and hypocrisy, pointing to statements by the Finance Minister earlier this year that tariffs would not be used to raise revenue or to reward inefficiencies at the Electricity Company of Ghana (ECG).

“In January, the Minister emphatically stated tariffs will not be used to raise revenue or reward ECG’s inefficiencies. This levy is a complete and unacceptable reversal of that commitment,” the Minority noted.

They questioned the government’s silence on reforms at ECG, pressing for concrete steps to improve the struggling utility.

Further criticism was leveled at the government’s rationale that falling fuel prices could absorb the new tax. The Minority warned of the volatility of international oil markets and questioned the impact if fuel prices rise again.

“This tax is part of a pattern of broken promises,” the Minority stated, highlighting the recent fare reduction coaxed from drivers by the Minister for Transport, only to be undermined by the new fuel levy. Coupled with recent tariff hikes on electricity (14%) and water (3%), the Minority accused the government of lacking empathy.

While the government has scrapped unpopular taxes like the e-levy and bet levy, the Minority argued these were merely replaced by this new fuel levy “in disguise.”

The passage of the bill was also heavily criticized. “This bill was passed under a certificate of urgency with the speed of light, while Ghanaians were sleeping. It was a midnight robbery,” the Minority charged, calling it “the antithesis of good governance.”

The Minority further condemned the government for failing to cut its own perks, pointing to the continued free fuel provision for government appointees. “Are they exempt from the pain they are inflicting on the rest of us? At least the President and his appointees should walk the talk by sacrificing with us.”

Citing the popular public slogan “Ato Didn’t Force,” the Minority said it “perfectly encapsulates the government’s approach: a forceful imposition of hardship without genuine consideration for the people.”

In conclusion, the Minority called for the immediate withdrawal or at least a significant reduction of the levy and announced plans to join civil society and citizens in street protests.

“We urge all Ghanaians to join us in opposing this unjust and economically devastating tax. This is not just about a one-cedi increase; it’s about the soul of our nation,” the Minority stated passionately.