Fuel Prices Predicted to Increase As Mahama Scraps Perks

Ghanaians woke up to a triple dose of fuel-related news on July 16, 2025, as the government officially implemented a new GHS1 fuel levy, fuel prices edged closer to the 9% mark, and President Mahama made headlines by cancelling fuel allowances for political appointees.

The latest edition of the Cedi Board® captures these critical developments, offering a snapshot of how economic reforms, energy policy, and political decisions are converging at the fuel pump.

New GHS1 Fuel Levy Takes Effect

The Energy Sector Levy (Amendment) Act, 2025 (Act 1141), officially came into force today, introducing significant increases to levies on petroleum products across Ghana. After months of postponement, the revised levy structure is being enforced by the Ghana Revenue Authority in partnership with the Ministries of Finance and Energy.

Here's a look at the revised rates:

Product	Old Rate (GHS/Litre)	New Rate (GHS/Litre)
Petrol (PMS)	0.95	1.95
Diesel (AGO)	0.93	1.93
Marine Gas Oil (Local)	0.03	0.23
Marine Gas Oil (Foreign)	0.93	1.93
Residual Fuel Oil (RFO)	0.04	Unchanged

The government insists the revised levy is essential to fund energy infrastructure and repay legacy debts in the power sector. Authorities argue the timing is strategic, aimed at stabilizing the economy while safeguarding the fiscal space.

COPEC Predicts 6–9% Fuel Price Hike

The Chamber of Petroleum Consumers (COPEC) forecasts fuel price increases between 6% and 9% during the second pricing window of July 2025. In its latest market report, COPEC projects average fuel prices could jump by 8%, with the Energy Sector Levy contributing significantly to the hike.

Here are the projected prices:

• Petrol: From GHS11.59/L to GHS12.34/L (+6.47%)

• Diesel: From GHS12.97/L to GHS14.18/L (+9.30%)

• LPG: Expected to drop slightly by 0.45%, averaging GHS11.55/kg

  
  

These changes take effect from today, Wednesday, July 16, 2025.

Ironically, the price hikes are occurring even as global crude oil prices have fallen by 4.89%, and the cedi has only marginally depreciated by 0.47%. COPEC warns that without a reduction in taxes or introduction of fuel subsidies, consumers will continue to feel the squeeze.

President Mahama Cancels Fuel Allowances

In a move that has taken many by surprise, President John Dramani Mahama announced the immediate cancellation of all fuel allowances for political appointees. The directive was made public on July 15 through an official communication from the Office of the President.

According to the release, this bold austerity measure is part of a broader plan to cut government spending and redirect funds to priority sectors.

“The President believes that leadership must also bear its part of the sacrifices it is calling on the people to make,” the statement emphasized.

This decision comes on the eve of the GHS1 fuel levy implementation, seen by many as a strategic gesture to show solidarity with the public.

The Mahama administration has recently intensified efforts to cut costs, including reducing the size of government and cancelling luxury perks like satellite TV subscriptions in state offices.

Gold Prices Slide, Cedi Holds Strong

Amidst all the fuel drama, the Ghana Gold Coin price dipped sharply to GHS36,373.75, down from GHS44,403.68 in November 2024, a decline of over GHS8,000.

Meanwhile, the cedi remained stable against the US dollar, trading at GHS10.41 as of July 15, 2025, according to the Bank of Ghana’s interbank selling rate.

This relative currency stability provides a modest cushion for importers and policymakers, even as commodity markets remain volatile.

Investor Insight: GOIL Shares Surge 38.16% YTD

Despite rising fuel prices, GOIL shares have delivered a stunning 38.16% year-to-date gain, reflecting investor confidence in downstream petroleum performance and higher profit margins from revised pricing strategies.

This aligns with broader market trends favoring energy stocks amidst tightening supply and regulatory changes.

With Ghanaians now facing higher fuel costs, a new levy, and economic uncertainty, July 16 may well be remembered as a turning point in Ghana’s post-COVID fiscal trajectory. The government's message is clear: it needs revenue, but it's also willing to share the burden, at least symbolically, through executive cost-cutting.

The road ahead will depend on how long the government can sustain these reforms without triggering political or public backlash.

Stay tuned to the Cedi Board® for real-time updates on Ghana’s financial pulse. From prices and policy to investment tips that help you make sense of the numbers.