Kojo Oppong Nkrumah, MP for Ofoase-Ayirebi and Ranking Member on Parliament’s Economy and Development Committee, has called for a fundamental review of Ghana’s fuel taxation policies following the government’s suspension of the Energy Sector Levy increase.
Speaking to Citi Eyewitness News, the lawmaker welcomed the Ghana Revenue Authority’s (GRA) decision to postpone the levy hike but cautioned against treating the pause as a permanent solution. “This suspension presents a crucial window to fundamentally reassess our fuel revenue architecture rather than implement temporary fixes,” he stated.
The suspended measure would have increased the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) on petroleum products starting June 16, 2025. A GRA circular signed by Commissioner-General Anthony Kwasi Sarpong confirmed the delay followed consultations between the Finance Ministry and industry stakeholders.
Oppong Nkrumah argued the current system places disproportionate burdens on consumers while failing to address structural issues in energy sector financing. “We’re not just advocating suspension but complete reevaluation of how we generate revenue from fuel products,” he emphasized, noting that persistent levy adjustments without broader reform risk exacerbating economic pressures.
The Energy Sector Levy has remained contentious since its introduction, with critics contending it contributes significantly to Ghana’s high fuel prices. Recent data shows petroleum levies account for nearly 40% of pump prices, with the suspended ESSDRL alone representing 3% of current fuel costs.
Analysts suggest the government’s decision reflects growing sensitivity to cost-of-living concerns amid Ghana’s IMF program implementation. As the Finance Ministry prepares its mid-year budget review, stakeholders await signals about whether this pause will evolve into substantive policy changes.
