GH¢1 Fuel Levy Will Push Up Transport and Food Prices – Dr. Steve Manteaw Warns – GhArticles.com
Civil society advocate Dr. Steve Manteaw has raised red flags over the newly approved GH¢1 per litre fuel levy, warning that it could trigger increases in transport fares and food prices, deepening the burden on Ghanaian consumers.
According to Dr. Manteaw, the levy, introduced under the Energy Sector Levy (Amendment) Bill, 2025, comes at a time when government is urging traders to reduce prices, making the policy both counterproductive and poorly timed.
In a Facebook post titled “My Take on the Proposed Amendment of the Energy Sector Levy,” Dr. Manteaw stated that while the initiative may be well-intentioned, it lacks adequate accountability mechanisms, leaving room for misuse. He also called for the levy to be revised from GH¢1 per litre to a more reasonable 25 pesewas per litre or imposed on a per-gallon basis to soften its impact on the cost of living.
“It’s too heavy a load for consumers,” he wrote. “This could undermine the government’s own inflation-control efforts.”
He further recommended including a sunset clause in the law to prevent it from becoming another perpetual tax, like the TOR Debt Recovery Levy. Dr. Manteaw suggested that government leverage gains from the Ghana cedi’s recovery and rising cocoa and gold prices to help offset the energy sector debt, rather than passing the cost directly to consumers.
Parliament passed the bill on Tuesday, June 3, under a certificate of urgency. The Finance Ministry estimates the new levy will generate GH¢5.7 billion annually, which will go toward settling the energy sector’s US$3.1 billion debt and funding thermal power fuel needs in 2025.
Finance Minister Dr. Cassiel Ato Forson assured that the strong performance of the cedi will absorb the levy’s effect at the pump, but critics, including the Minority in Parliament, are unconvinced.
Describing the new fuel charge as a repackaged E-Levy, dubbed “E-Levy Promax” the Minority condemned it as yet another burden on Ghanaians.
They staged a walkout during the approval vote, protesting recent tariff increases and accusing the government of economic insensitivity.