The Minority in Parliament is urging the government to permanently withdraw the proposed GHS1 per litre fuel levy and instead adopt more sustainable and equitable methods of raising revenue to address the country’s energy sector debt.
This follows the government’s decision to postpone the implementation of the levy, which was scheduled to take effect today, June 16. The suspension comes amid public backlash and rising concerns over the potential impact of the levy on fuel prices and cost of living.
Speaking to the media, the Ranking Member on Parliament’s Economy Committee and Member of Parliament for Ofoase Ayirebi stated that taxing petroleum products is an unsustainable approach to revenue mobilisation.
“We as a Minority have called on the government to go beyond the suspension and scrap the levy entirely,” he said. “This suspension reveals two things: First, we warned that introducing the levy would increase pump prices. Second, assuming international fuel prices would remain stable was flawed.”
He further described the suspension as an implicit admission by the government of a policy miscalculation. “While we wait for the levy to be scrapped, we are urging the government to use this period to begin a comprehensive review of the efficiency and fairness of our revenue mobilisation system,” he added.
The MP also highlighted broader fiscal challenges facing the country. He pointed out that the national budget continues to face a significant shortfall due to tax cuts that were not matched by reductions in public spending.
“Our revenue problems have not gone away. This GHS5.7 billion levy was meant to patch a budget hole of about GHS6 billion. That problem still exists,” he cautioned.
The Minority maintains that any future revenue measures must be fair, balanced, and should not disproportionately burden ordinary Ghanaians. They are calling on the government to explore alternative strategies that promote long-term fiscal sustainability without compounding economic hardship.
The government has yet to announce a new date for the potential implementation of the levy or whether it will consider the Minority’s calls for its full withdrawal.
