Fuel prices across Ghana are projected to rise significantly starting today, following the enforcement of the revised Energy Sector Levy (Amendment) Act, 2025 (Act 1141). The law, which introduces new rates under the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL), is aimed at addressing long-standing financial shortfalls and legacy debts within the country’s energy sector.
The Chamber of Petroleum Consumers (COPEC) has cautioned that the implementation of the levy could push fuel prices up by between 6% and 9% in the coming pricing window, despite falling global crude prices.
According to COPEC’s latest projections:
Petrol prices are expected to climb by 6.47%, averaging GHS12.34 per litre
Diesel prices are forecast to jump by 9.30%, reaching GHS14.18 per litre
The combined average price for petrol and diesel is projected at GHS13.26 per litre
Liquefied Petroleum Gas (LPG) is the only exception, expected to drop slightly by 0.45%, settling at GHS11.55 per kilogram
These forecasts are driven by a mix of global oil price movements, cedi-dollar exchange trends, and the new GHS1-per-litre levy imposed by the Energy Ministry.
Government’s Rationale
The levy was introduced following consultations between the Ministry of Finance and the Ministry of Energy. According to the Ghana Revenue Authority (GRA), the measure is part of a broader plan to stabilise the economy, enhance energy sector financing, and ensure the sustainability of critical infrastructure.
Officials believe the new levy will create a reliable revenue stream to support debt repayment and shore up underfunded components of Ghana’s power generation and distribution chain.
COPEC Raises Concerns
COPEC Executive Secretary Duncan Amoah has expressed concern over the likely burden on consumers. While acknowledging the need for sustainable financing, he urged the government to reconsider fuel taxes, which currently account for about 26.5% of pump prices.
“We urge government to look at tax restructuring or even targeted subsidies—especially for LPG—to promote clean energy and reduce the use of firewood,” Amoah said.
He also stressed the importance of reviving the Tema Oil Refinery (TOR), arguing that boosting local refining capacity would help Ghana cut reliance on costly fuel imports.
Call for Market Discipline
Mr. Amoah warned Oil Marketing Companies (OMCs) not to exploit the levy as a pretext for excessive pump price hikes.
“We call on OMCs to act responsibly and avoid burdening consumers unnecessarily,” he said.
Despite global crude prices falling by nearly 5% to $70.79 per barrel, the slight depreciation of the cedi has counterbalanced potential savings. COPEC, however, welcomed the relative currency stability and encouraged the government to maintain fiscal discipline in its energy
