The Ghana Private Road Transport Union (GPRTU) has called off its intended strike following discussions with the government over the controversial GHS1 fuel levy.
Public Relations Officer of the GPRTU, Ibrahim Moru Abass, said the decision was made after the government postponed the implementation of the fuel levy to June 16, 2025.
“We have called off the intended sit-down strike action we came up with. We’ve been engaged by the Transport Ministry. We shall communicate our final decision taken on June 16,” Mr. Abass Moro announced on June 9.
This development follows the signing of the Energy Sector Levy Bill into law by President John Dramani Mahama on June 5. The bill introduces a GHS1 levy on each litre of fuel sold in the country, with the aim of tackling Ghana’s ongoing power crisis and addressing debts within the energy sector.
During the signing ceremony at the Jubilee House in Accra, President Mahama assured that funds accrued from the levy would be used exclusively for the purposes outlined in the legislation.
“Today, we are signing the Energy Sector Levy Act, all this with the view to trying to eliminate the energy sector debts and stop the crisis in the energy sector and create an energy sector that delivers lower tariffs and better service to our people. I wish to pledge to the Ghanaian people that we are determined to self-redeem the energy sector crisis once and for all and resolve the issue of energy sector debts.
… Although painful it is, to sign this, I was appointed not only to take soft decisions and easy decisions but also to make hard decisions. One of the assurances I gave you is that this money will be used exactly as it is meant for. It won’t be like in the past where the ESLA was collateralised and diverted for other things.”
President Mahama also indicated that beyond imposing the levy, the government would introduce reforms in the power sector to increase revenue generation and reduce energy sector debt.
“Aside from signing this levy, we are also going to reform the power sector so that we are collecting more revenue to be able to pay this debt.”
Acknowledging concerns from the public, the President emphasized that the tax would not be permanent.
“This Act which has been christened D-levy will not be forever, it is temporary to try and resolve our crisis in the power sector.”
During the presentation of the final report of the National Economic Dialogue 2025 at the Jubilee House on June 4, President Mahama defended the levy as a necessary measure to stabilize the country’s energy sector.
“This decision, though difficult, is necessary and justifiable,” he explained. “It is part of a broader strategy to liquidate debt and stop the bleeding in the power sector.”
According to the President, Ghana’s energy sector carries a debt burden of over US$3.1 billion, with an additional US$1.8 billion required to ensure uninterrupted thermal power generation.
“If left unaddressed, this situation significantly threatens national productivity and industrial growth,” he warned.
The levy was passed by Parliament on Tuesday, under a certificate of urgency, as part of the Energy Sector Levy (Amendment) Bill, 2025.
President Mahama assured Ghanaians that the estimated GHS5.7 billion annual revenue from the levy would be ring-fenced and not deposited into the Consolidated Fund.
“Funds from this levy will not be subject to the hazards of the consolidated fund,” Mahama stated. “They will be regularly audited, with reports made public to ensure transparent use.”
The GPRTU had initially opposed the levy, threatening a nationwide strike if the government did not withdraw the tax before June 10. However, with the latest postponement, the union has decided to hold off on industrial action, pledging to review the situation and make a final decision on June 16.
