The Ministry of Energy has confirmed that the much-anticipated GHC1 Energy Sector Levy officially takes effect today, Wednesday, July 16, 2025, following a brief delay caused by stakeholder concerns and fluctuations in global oil prices.
Announcing the rollout on TV3’s Business Focus, Richmond Rockson (Esq.), Head of Communications at the Ministry, explained that the initial postponement was due to appeals from several Oil Marketing Companies (OMCs), including the Chamber of Oil Marketing Companies (COMAC), which prompted extended consultations with government.
“The government decided to temporarily hold off on implementation to properly address the concerns raised by stakeholders,” Rockson noted.
“Now that those concerns have been resolved, the levy is scheduled to come into effect on July 16.”
He also cited the recent escalation of tensions in the Middle East, particularly between Iran and Israel, as another key factor that contributed to volatility in global fuel prices and influenced the timing of the levy’s introduction.
Rockson clarified that the Energy Sector Levy is not simply a revenue-generating measure, but a vital part of government’s broader strategy to ensure long-term sustainability of Ghana’s energy infrastructure.
“This is not just about money. The people of Ghana remain at the center of this decision. It’s about securing the future of our energy sector and ensuring that service delivery remains reliable and equitable,” he stated.
As part of the new measures, Marine Gas Oil (MGO) will also be covered under the levy.
According to Rockson, this inclusion is designed to plug regulatory loopholes and ensure fair and consistent application of the levy across all petroleum products.
“The MGO segment will not be exempt. It will be fully covered under the Energy Sector Levy,” he emphasized.
MGO, which is typically used to power maritime operations—including fishing vessels and marine security patrols—has historically been subsidized by the government. However, industry reports and stakeholder feedback suggest that the subsidy has been widely abused, with some entities diverting subsidized fuel for commercial sale at filling stations.
COMAC has been vocal in advocating for the removal of the subsidy, arguing that eliminating it could save the state significant revenue while curbing misuse in the downstream petroleum sector.
By folding MGO into the new levy framework, the Ministry hopes to promote transparency, close avenues for exploitation, and improve regulatory oversight across the energy value chain.
The GHC1 Energy Sector Levy is part of a broader package of policy reforms aimed at stabilizing Ghana’s energy industry, enhancing infrastructure investment, and creating a more transparent and accountable system for managing petroleum product pricing and distribution.
