The Ghana Private Road Transport Union (GPRTU) has expressed disappointment in the government over its GHS1 levy on fuel, following the assent to the Energy Sector Levy (Amendment) Bill, 2025.
Speaking to the media on Thursday, June 5, the Industrial Relations Officer of GPRTU, Abass Imoro, indicated that drivers are at a disadvantage as the GH₵1 increase per litre of fuel effectively offsets the 15% reduction in transport fares.
“Looking at the 15% reduction — looking at the GH₵1 on a litre, it can never marry each other,” he stated.
He indicated that the group should have been consulted, just as the government engaged them on transport fare reductions.
According to him, the union would have carefully considered its 15% cut in fares during the negotiations, adding that the group wouldn’t have agreed to such a steep percentage.
“They knew very well that they had this under their sleeves and we sat with them, we engaged them on our 15% reduction and we finally came to a conclusion…It is very painful that they knew very well they had this under their sleeves that they should have informed us that this is what government intends doing so that we would have known how to go about our reduction. It wouldn’t have been as deep as this 15% that we went to,” he said.
“Lo and behold, they came out without any consultation. We are a major player in the fuel industry — the consumption of fuel, we play a lot of role in that. So we think if they had such a thing, they should have engaged us and see if we also have any contributions,” he noted.
Meanwhile, the union has threatened a nationwide strike on Tuesday, June 10, if the policy is not revised.
The group has argued that the policy’s rollout will have significant implications for operators, as it will drive up operational costs.
But President John Dramani Mahama has assured Ghanaians that funds generated from the newly approved GHC1 fuel levy will undergo regular audits.
He explained the move is to ensure accountability and transparency.
“Funds from this levy will not be subject to the hazards of the Consolidated Fund. The fund will be regularly audited and audit reports made public to ensure its transparent use.”
He has reiterated the government’s decision to clear the accumulated legacy debts in the power sector with part of the revenue generated from the levy.
He stated that “initially much of this revenue will go to the purchasing of fuel to ensure stable power of electricity.”
Government will also reduce the use of liquid fuel in the energy mix as it expects more gas from the ENI, Sankofa, Jubilee and TEN fields, as well as West African Gas Pipeline.
“At that stage, the resources generated by this increased levy will be channeled to pay accumulated legacy debts in the power sector,” he added.
The president signed the bill, which seeks to introduce a GH¢1.00 petroleum levy, on Thursday, June 5, following approval by Parliament on Tuesday, June 3.
The Majority side of the House approved the bill after the Minority side staged a walkout.
Energy and Green Transition Minister, John Abdulai Jinapor, has defended government’s move despite opposition from some stakeholders in the energy sector.
He noted that the timing of the introduction of the levy is apt as the cedi continues to appreciate against major trading currencies.
The minister projects to generate revenue ranging between GH¢5 billion and GH¢6 billion to support the procurement of liquid fuel.
“Fuel was around GH¢16.00, and a sensitive government will not slap a tax when fuel is GH¢16.00. You couldn’t have imposed that tax around that time when fuel was still very high, and so you needed to work to bring fuel down to this level and share the gain with Ghanaians. At that time, if we had increased it, you can imagine the impact on Ghanaians, but today, the net effect is that you are still having a reduction of GH¢3.00 on a litre of fuel,” he explained.
“It is better to do it today than to (have done) it yesterday, when it would have eroded your income; today, your purchasing power has increased because of the reduction of the value of the dollar,” he said while speaking on JoyFM.
Some stakeholders in the energy sector have expressed their displeasure over the approval of the Energy Sector Levy (Amendment) Bill, 2025.
On the matter, Chief Executive Officer of the Association of Oil Marketing Companies (AOMCs), Dr Riverson Oppong Peprah,warned that the implementation of the levy could drive fuel prices higher, adding further strain on consumers and the downstream sector.
“When fuel prices began to fall, it wasn’t because the cedi gained stability; rather, it was due to a drop in plant prices caused by the decline in West Texas Intermediate (WTI) crude oil prices. Only after that did the cedi stabilise and support the downward trend.”