The government of Ghana has indefinitely suspended the implementation of the controversial GH₵1 fuel levy under the Energy Sector Levies Amendment Act. The levy, which was expected to take effect soon, has been put on hold, with authorities stating that a new implementation date will be communicated later.
The decision comes after widespread public backlash and concerns from key industry players. Many Ghanaians criticized the levy as an added burden during a period of high living costs. Drivers, transport unions, and civil society organizations all expressed frustration over the planned tax, warning it could lead to increased fuel prices and worsen economic hardship.
Finance Minister Dr. Cassiel Ato Forson initially announced the GH₵1 levy during the presentation of the government’s fiscal strategy, explaining that it was aimed at clearing energy sector debts and ensuring a sustainable power supply.
He argued that the levy would raise much-needed revenue to stabilize the sector, which has struggled with financial challenges for years.
Despite the rationale, the policy triggered intense debate across social media and within Parliament. Critics questioned the timing of the levy and urged the government to explore alternative funding mechanisms.
As the pressure mounted, the Ministry of Finance and the Ghana Revenue Authority agreed to suspend the rollout until further notice. This pause, officials say, will allow for broader consultations and stakeholder engagement before the policy is reintroduced.
