Oil Marketing Companies (OMCs) now have a one-week window to prepare for the rollout of the new GH¢1.00 per litre Energy Sector Levy, following a government agreement to shift the implementation date from June 9 to June 16, 2025.
The decision came after high-level consultations involving the Chamber of Oil Marketing Companies (COMAC), the Ministry of Energy and Green Transition, the Ministry of Finance, the Ghana Revenue Authority (GRA), and the National Petroleum Authority (NPA). In a statement signed by its Coordinator, Dr. Riverson Oppong, COMAC praised the stakeholders for what it called “constructive engagements.”
Earlier Pushback
The levy, officially known as the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL), had faced stiff resistance after GRA issued a directive for implementation on June 9. COMAC, in a strongly worded letter dated June 8, rejected the move, calling it an “institutional ambush.” The Chamber criticised the GRA for issuing the directive on a public holiday and delivering it over the weekend, allowing OMCs less than 24 hours to comply.
“This approach is neither lawful nor operationally feasible. It smacks of coercion rather than governance,” the letter stated.
COMAC warned that the abrupt rollout would have disrupted operations, as most OMCs operate a cash-and-carry system and needed time to adjust pricing, systems, and inventory.
Mounting Pressure on the Sector
The downstream petroleum sector is already burdened by eight existing taxes and levies, comprising 22% of the ex-pump price. With the ESSDRL, that figure would rise to 26%, raising cost concerns across the supply chain. COMAC also expressed frustration that its prior engagement with the Energy Minister on June 5, where it proposed a phased implementation, had been ignored.
Hope for a Smooth Rollout
With the new date of June 16 set, stakeholders hope the levy can now be implemented more smoothly. However, it remains uncertain how it will impact fuel prices. The second pricing window for June begins the same day, and prior forecasts had suggested a possible drop in pump prices. The introduction of the levy may now temper or neutralize those gains.
Meanwhile, commercial transport operators, who had threatened to embark on a sit-down strike if the levy was not withdrawn, have yet to indicate whether they will proceed with their action or wait to assess the impact after implementation begins. The coming week will be critical in determining both pricing outcomes and sector-wide reactions.
