The Chief Executive Officer of the National Petroleum Authority (NPA), Lawyer Godwin Edudzi Tamakloe, has linked the government’s suspension of the GH₵1 fuel levy to escalating geopolitical tensions in the Middle East, which he said have triggered concerns over global energy security.
According to him, the recent hostilities involving Israel and Iran have raised red flags over possible disruptions in oil shipments through the Strait of Hormuz—a vital corridor for global oil transportation.
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He warned that these tensions may have far-reaching implications on oil supply chains and Ghana, like many other import-reliant nations, must be strategic and cautious in how it implements fuel-related fiscal policies.
GH¢1 fuel levy
Speaking during a retreat with Parliament’s Energy Committee at the Royal Senchi Hotel in the Eastern Region, Lawyer Tamakloe clarified that the decision to pause the GH₵1 fuel levy on petrol and diesel, which was originally set to take effect on June 16, 2025, was made to allow for a more measured response to unfolding global developments.
He stated, “The government is always monitoring global events and will respond appropriately in the coming days. It doesn’t appear there has been any serious disruption yet, but there will be thorough consultation with the Chamber of Oil Marketing Companies and other stakeholders before the levy is implemented.”
The levy, intended to raise revenue to support infrastructure and energy sector financing, had been met with mixed reactions from the public and industry players. Critics expressed fears it would exacerbate the cost-of-living crisis, while supporters saw it as a necessary measure for long-term sustainability.
Lawyer Tamakloe assured that any future decision on the levy will be guided by data, market trends, and stakeholder engagement.
“We are not abandoning the policy. Rather, we are ensuring that its implementation is well-timed and sensitive to both local and international realities,” he stressed.
The Ghana Revenue Authority (GRA) announced the suspension of the GH¢1 fuel last week, citing ongoing review processes. Meanwhile, the NPA maintains that ensuring market stability and protecting consumers remain top priorities in its regulatory mandate.
“Our job is not only to regulate pricing but to safeguard national energy security,” the NPA CEO affirmed.