The Minority in Parliament has renewed calls for the government to scrap the GH¢1 fuel levy, describing it as an undue burden on Ghanaians already struggling with rising cost of living.

The Deputy Ranking Member on Parliament’s Energy Committee, Collins Adomako Mensah, made the call while speaking to journalists in Parliament, on Wednesday March, 18, 2026, insisting that the policy has outlived its relevance.

“The justification for this levy no longer exists. Keeping it is not policy, it is punishment,” he stated.

Mensah urged the government to immediately repeal the Energy Sector Levy Amendment Act of 2025 under a certificate of urgency.

His comments follow the recent rising global fuel prices, driven by escalating tensions involving the United States, Israel, and Iran, as well as, disruptions to oil supply routes such as the Strait of Hormuz.

Analysts warn that crude oil prices could surge to between $110 and $120 per barrel if the conflict persists, a situation that could push petrol prices in Ghana to between GH¢15 and GH¢17 per litre.

Data from the second pricing window of March 2026 shows diesel selling at GH¢15.60 per litre, while petrol has exceeded GH¢12.40 per litre.

According to Mensah, the levy, which adds GH¢1 to every litre of petroleum products, was introduced to support liquid fuel procurement and address legacy debts in the energy sector. However, he argued that the initial purpose has already been fulfilled.

“Between January and December 2025, the government paid approximately $1.47 billion to reset the energy sector, including full repayment of the GH¢597 million World Bank partial risk guarantee and settlement of outstanding gas invoices,” he explained.

“With the debt addressed and guarantees restored, the so-called One Ghana Cedi Levy serves no purpose and should be repealed immediately,” he added.

He further indicated that the Minority will push for a broader review of taxes and levies embedded in fuel prices to identify possible areas for relief.

The Minority had earlier staged a walkout in Parliament in protest against the levy, maintaining that its fiscal justification was weak and its timing inappropriate.

They insist that urgent action is needed to cushion households against the impact of rising fuel prices amid ongoing global oil market uncertainties.

SO/VPO