Fuel policy reset: Cedi additions and allowance subtractions
The Government of Ghana has rolled out two major fuel-related policy directives aimed at managing public spending and stabilizing the energy sector. A one-cedi levy has been added to each litre of petroleum products, while all fuel allowances and allocations for political appointees have been cancelled.
Though introduced separately, these measures, rolled out under what the government calls a “reset agenda,” are part of ongoing efforts to control public spending, reduce waste, and ensure the country’s energy sector remains stable.
One cedi fuel levy approved amid opposition
On June 3, 2025, Parliament approved the Energy Sector Levy (Amendment) Bill, introducing a one-cedi charge on every litre of petroleum product. The Finance Minister, Dr Cassiel Ato Forson, said the measure was essential to deal with the country’s growing energy sector debt, which stood at 3.1 billion dollars as of March 2025.
He assured Parliament that the impact of the levy would be minimal, explaining that recent gains by the Ghana cedi would help absorb the cost and prevent sharp increases in pump prices.
But the Minority strongly opposed the bill and staged a walkout during its approval. Members argued that the charge would place an added burden on ordinary Ghanaians and questioned whether the vote had the required numbers. The levy, they said, was no different from other unpopular taxes such as the E-levy, that had been recently repealed.
Despite the Finance Minister’s assurances, the levy has already affected fuel prices.
On July 16, the day it took effect, GOIL raised the price of petrol from 12.07 cedis to 12.88 cedis per litre. Diesel moved from 13.20 to 14.38 cedis. Other oil marketing companies, including Star Oil, also adjusted their prices, with petrol now selling at 12.59 cedis.
Dr Riverson Oppong, Chief Executive of the Chamber of Oil Marketing Companies, noted that prices could have dropped by about two percent if the levy had not been introduced. The Chamber of Petroleum Consumers has also urged the government to re-examine the full tax structure on fuel, arguing that some relief is needed for consumers.
Fuel allowance cancelled: Shared burden or symbolic move?
On July 15, President Mahama announced the cancellation of fuel allowances and allocations for political appointees with immediate effect. A statement from his spokesperson, Felix Kwakye Ofosu, said the move is part of broader plans to cut costs and promote accountability in public office.
While some see the cut as a small gesture in terms of actual savings, others believe it sends a strong signal that leaders must also be part of the country’s efforts to manage its finances.
Deputy Government Spokesperson Shamima Muslim, speaking on Joy News, described the cancellation as necessary as it involves political appointees in the country’s wider financial efforts.
“We cannot ask Ghanaians to make sacrifices while appointees are fully covered. This is about fairness.” She indicated.
Shamima added that any savings from the move could be used in areas that need funding.
“We hope to put whatever we save into education, health, local government, and other key areas. This is about using public money prudently.”
Member of Parliament for Komenda Edina Eguafo Abrem, Samuel Atta Mills, also supported the directive.“There are so many government vehicles. This sets a good example’’
In a harsh opposition, the Minority in Parliament has described the cancellation of fuel allowances as a publicity move. Akuapem North MP, Sammy Awuku, said it does not go far enough and questioned how serious the government is about cutting spending.
Akuapem North MP, Sammy Awuku, said if the government is serious, it should it close down the fuel depots at the Castle and Jubilee House.
“Close down the fuel depots at the Castle and Jubilee House. That would show real commitment.”
He also asked for clarity on who qualifies as a political appointee.
“Who are the political appointees? Does it include ministers? Does it include CEOs? Does it include presidential staffers?”
Conclusion
Together, the one-cedi fuel levy and the cancellation of fuel allowances for political appointees show the government’s current approach to managing rising costs and public spending.
While these measures have triggered different responses, they indicate a broader conversation about who bears the cost of economic adjustments and how far the state is willing to go in ensuring accountable public resource use.
By Joyce Kpeglo
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