GHC1 Fuel Levy to Begin July 16
The Ghana Revenue Authority (GRA) has announced that a new GHC1 fuel levy will come into effect on July 16, 2025. This decision was communicated in a press release dated July 1.
The GRA explained that the implementation of the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), had been previously postponed from June 13, 2025. This delay was made in consultation with the Ministries of Finance and Energy to allow for a thorough assessment of global market conditions and to protect recent improvements in domestic fuel prices.
“Following a thorough review of prevailing market indicators and in line with the government’s commitment to ensuring stable economic conditions, the implementation of the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), will now commence, effective 16th July 2025,” the GRA stated.
When first proposed, the levy faced significant public criticism. The government had explained that the funds collected would be used to settle debts owed to Independent Power Producers (IPPs) to prevent a return to erratic power supply, commonly known as ‘dumsor’. However, some stakeholders opposed the tax.
The Minority in Parliament criticized the government, alleging that it had misled the public by replacing the electronic levy (E-levy) with this new ‘Dumsor levy’ (D-levy).
The initial suspension of the levy’s introduction was widely welcomed. However, with this new announcement, fuel consumers will now incur the additional cost, despite previous government assurances that it would not lead to a price increase.
