The Association of Ghana Industries (AGI) has urged government to immediately cancel the GH¢1 fuel levy, warning that the policy is driving up operational costs for businesses across the country.
The call comes against the backdrop of rising global fuel prices, which the Association says have been further impacted by geopolitical tensions, including the US-Israel conflict involving Iran.
Speaking at a high-level meeting with the Minority in Parliament on Wednesday, April 1, AGI President Kofi Nsiah-Poku cautioned that businesses may be forced to increase prices if the levy remains in place.
“Fuel prices have gone up by more than 30 percent. It is important that we begin discussions on removing the GH¢1 levy to ease our operational costs,” he said.
He warned that failure to act could reverse recent economic gains, particularly the stabilisation of the cedi, as rising fuel costs could offset those improvements.
“If nothing is done, we may have no option but to adjust prices, which we do not want to do. We do not want a situation where the impact of the Cedi will now be balanced by fuel prices and therefore, we come back to square one,” he added.
Meanwhile, former AGI President Humphrey Ayim-Darke called for a data-driven review of the levy, stressing the need to assess its original purpose and outcomes before any final decision is taken.
He questioned how much revenue has been generated from the levy, how it has been utilised, and whether its intended objectives have been achieved.
“In the computation of tariffs, we know there are fuel in the formula. What sort of fuel are we using in the computation of tariffs. So, what have you accumulated from the GHC1, what has it been used for? Have you met it? If you have met it then we can advocate for the scrapping of the levy. If you haven’t what are the timelines? Then it becomes scientific, the intent and the achievement.” he said.
The AGI maintains that addressing the levy is critical to easing pressure on businesses and preventing further increases in the cost of goods and services.
The GH₵1 fuel levy, often referred to as the Energy Sector Shortfall and Debt Repayment Levy is a tax imposed on every litre of petroleum products in Ghana.
Introduced in 2025, it aims to raise approximately GH₵5.7 billion annually to clear legacy energy sector debts and fund the procurement of fuel for thermal power plants to prevent power outages.
