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Ghc1 tax per litre of fuel lacks clarity and would likely make fare reductions impossible – GPRTU

June 4, 2025
GPRTU-Station

The Ghana Private Road Transport Union (GPRTU) has indicated that the approval of the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on petroleum products, is harsh and an unfortunate incident.

Industrial Relations Officer for GPRTU Abass Imoro said there is a lack of clarity on the new Amendment Bill, but if it is confirmed that the Ghc1 per litre tax will be charged to drivers, then it will amount to a harsh situation.

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Speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5FM, he stated that the GPRTU was in the process of admonishing drivers who were yet to reduce their fares following the reduction in fuel prices, but unfortunately, this new tax introduced has defeated that purpose.

Parliament on Tuesday, June 3, 2025, approved the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on petroleum products.

The government says the bill aims to raise additional revenue to deal with the energy sector debt and ensure a stable power supply.

It was passed under a certificate of urgency late Tuesday, June 3, 2025, after the minority had staged a walkout.

The finance minister, Dr Cassiel Ato Forson, who laid the bill under a certificate of urgency, stated that the energy sector’s total indebtedness stood at US$3.1 billion as of March 2025.

He also claimed that a minimum of US$3.7 billion is required to fully clear this debt, with an additional US$1.2 billion needed to procure essential fuel for thermal power generation throughout 2025.

He told the House that the impact of the new levy on ex-pump prices would be absorbed by the gains made from the strong performance of the Ghanaian cedi, meaning consumers would not experience an immediate price hike.

Reacting to this, Abass Imoro admitted that there is a lack of clarity on the matter; however, if it emerges that the GHC 1 per litre tax will directly affect drivers, then it will be a recipe for disaster.

” There is no clarity in this matter. Will drivers have to pay the GH₵1 per litre tax? If that is the case, I do not think it will work. We will not entertain that. We had just reduced fares due to lower fuel costs, and now you’re imposing a new Ghc1 tax on each litre of fuel? This will not stand if that is what happens.

We still don’t fully understand it, but I will say that if the GHC 1 comes from us, it is insensitive. Are we supposed to make progress or regress? So we want that clarity so that we can determine the best and most appropriate response to the problem. Drivers know the value of every pesewa removed from fuel, but when you want to increase the tax on fuel, you raise it by Ghc1 to a litre; that is insensitive. It’s ridiculous and outrageous. Please give us time to understand the issues, and we will respond to them.”

By: Rainbowradioonline.com/Ghana

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