The Ghana Private Road Transport Union (GPRTU) has officially called off its planned strike following discussions with the government.
Public Relations Officer of the GPRTU, Ibrahim Moru Abass informed 3news that the decision came after the government postponed the commencement of the GHC1 fuel levy to June 16, 2025.
“We have called off the intended sit-down strike action we came up with. We’ve been engaged by the Transport Ministry. We shall communicate our final decision taken on June 16,” Mr Abass Moro said on June 9.
It is recalled that on June 5, President John Mahama signed the Energy Sector Levy Bill into law, introducing a GHC1 levy on each liter of fuel to address the ongoing power crisis and rescue Ghana’s heavily indebted energy sector.
During the signing at the Jubilee House in Accra, he assured that the money that will accrue from the levy will be used for the purposes for which it will be collected.
“Today, we are signing the Energy Sector Levy Act, all this with the view to trying to eliminate the energy sector debts and stop the crisis in the energy sector and create an energy sector that delivers lower tariffs and better service to our people. I wish to pledge to the Ghanaian people that we are determined to self-redeem the energy sector crisis once and for all and resolve the issue of energy sector debts.
… Although painful it is, to sign this, I was appointed not only to take soft decisions and easy decisions but also to make hard decisions. One of the assurances I gave you is that this money will be used exactly as it is meant for. It won’t be like in the past where the ESLA was collateralised and diverted for other things. ”
He added “Aside from signing this levy, we are also going to reform the power sector so that we are collecting more revenue to be able to pay this debt.
“This Act which has been christened D-levy will not be forever, it is temporary to try and resolve our crisis in the power sector.”
President John Dramani Mahama defended the government’s decision to impose the levy, describing it as a “difficult but necessary” measure to rescue Ghana’s heavily indebted energy sector and prevent further power crises.
Speaking at the Jubilee House on Wednesday, June 4, during the presentation of the final report of the National Economic Dialogue 2025, President Mahama acknowledged public concerns over the levy but stressed that the move is essential for securing the country’s energy future.
“This decision, though difficult, is necessary and justifiable,” the President stated. “It is part of a broader strategy to liquidate debt and stop the bleeding in the power sector.”
According to President Mahama, the energy sector currently carries over US$3.1 billion in debt, with an additional US$1.8 billion required to finance fuel procurements needed for uninterrupted thermal power generation in the coming months.
The levy was passed by Parliament on Tuesday as part of the Energy Sector Levy (Amendment) Bill, 2025, under a certificate of urgency.
It imposes a GHS1 tax on every litre of fuel sold in the country.
President Mahama said the measure follows recommendations from the National Dialogue to take bold action to solve the long-standing energy crisis.
He assured that the estimated GHS5.7 billion in annual revenue from the levy will be ring-fenced and not lodged in the Consolidated Fund.
“Funds from this levy will not be subject to the hazards of the consolidated fund,” Mahama said. “They will be regularly audited, with reports made public to ensure transparent use.”
The GPRTU expressed strong opposition to the move, threatening a nationwide strike if the government did not withdraw the levy before Tuesday, June 10.
Despite the backlash, President Mahama defended the decision, acknowledging its difficulty but stressing its necessity for the country’s energy future.
In the latest development, the GPRTU has decided to hold off on the strike, stating that “we will monitor the situation and give the government until June 16 before taking any further action.”