Fuel Watch: Petrol Prices Go Up As GH¢1 D-Levy Takes Effect

• Fuel prices in Ghana have risen following the implementation of the GH¢1 increase in the prices of petrol and diesel
• The revised levy, part of the Energy Sector Levy (Amendment) Act, 2025, is expected to help settle government debts and fund energy projects
• StarOil Ghana has increased fuel prices by up to GH¢1, with petrol rising by 14.56% and diesel by 7.70%

Fuel prices in Ghana have increased following the implementation of the GH¢1 increase per litre in the prices of petrol and diesel.

The revised levy, popularly known as the D-Levy, part of the Energy Sector Levy (Amendment) Act, 2025, aims to boost government revenue for settling legacy debts and financing strategic energy projects.

The Ghana Revenue Authority (GRA) has implemented the levy, resulting in revised fuel prices.

The new rates are:

• Petrol: GH¢1.95 per litre, up from GH¢0.95 per litre
• Diesel: GH¢1.93 per litre, up from GH¢0.93 per litre

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As the implementation of the amended Energy Sector Levy takes effect on Wednesday, July 16, 2025, some of the oil marketing companies in the country have revised their prices upwards by GH¢1.

According to StarOil Ghana, a litre of Petrol (Super), which used to sell at GH¢10.99, will now be sold at GH¢12.59.

Also, a litre of diesel, which previously sold at GH¢12.99, will now sell at GH¢13.99.

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This means that the price of petrol has increased by 14.56 per cent while diesel has gone up by 7.70 per cent, according to the latest updates from StarOil Ghana.

The price hike is expected to affect consumers and businesses, potentially leading to increased transportation costs and higher prices for goods and services.

The GH¢1 increase per litre in taxes on fuel products, popularly known as the D-levy, was originally scheduled to take effect from June 9, 2025, however the government postponded it following concerns raised by the Chamber of Oil Marketing Companies over the levy’s timing and impact on consumers.

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Energy Minister explains GH¢1 increase on fuel

The President John Dramani Mahama-led administration rolled out the GH¢1 increase in taxes on petroleum products in an attempt to address the long-standing energy crisis in the country.

This move, however, has ignited outrage among Ghanaians, with many expressing their concerns on social media.

Reacting to this, the Minister for Energy and Green Transition, John Jinapor, clarified that the revised levy was not intended to cover the energy sector's legacy debts.

Speaking to Accra-based Joy FM, Mr Jinapor, who is also the Member of Parliament for Yapei-Kusawgu, explained that the government had assessed the energy sector and discovered that the liquid fuel consumed in the country was not included in the tariff structure.

He further stated that the government requires over US$1B this year alone to procure liquid fuels and emphasised that even if all citizens paid for the power they consume and the Electricity Company of Ghana (ECG) collected 100 percent of the payments, none of it would go towards procuring liquid fuel.

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"What we are doing is that we have studied the situation, conducted the analysis in the energy sector, and the basic truth is that the liquid fuel we buy is not currently part of the tariff structure."

"So, when you and I pay for electricity, even if ECG were to collect the money 100 per cent today, none of that money would go into the procurement of liquid fuel. Meanwhile, we require over $1 billion this year alone to procure liquid fuel," he stated.

The government hopes that the additional revenue generated will help stabilise the economy and provide a sustainable solution to the country's energy challenges.

Energy expert cautions Forson over fuel levy

Meanwhile, YEN.com.gh reported that the Executive Director of the Africa Centre for Energy Policy (ACEP), Benjamin Boakye, warned the Finance Minister, Ato Forson, against repeating the mistakes of his predecessor by relying heavily on taxes.

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He criticised the move to effect a GH¢1 increase in the taxes on fuel products, calling it a poor way to address the sector's inefficiencies, which require decisive leadership.

Despite opposition, Parliament passed the Energy Sector Levy (Amendment) Bill, amid rising concerns over Ghana's growing energy sector debts.

Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.

Source: YEN.com.gh