Deputy Ranking Member of Parliament’s Energy Committee, Collins Adomako-Mensah, has dismissed the government’s rationale for suspending the controversial Energy Sector Shortfall and Debt Repayment Levy (ESSDRL), describing it as “laughable” and lacking credibility.

Appearing on Channel One TV on Sunday, 15 June, Mr Adomako-Mensah took issue with the government’s explanation that the postponement was necessitated by rising geopolitical tensions between Iran and Israel.

He argued that such reasoning flies in the face of earlier claims that the levy would have no bearing on fuel prices.

“If you recall during the debate, we were told that this particular levy will not lead to an increase in petroleum prices,” he pointed out.

“The reason given by the government — that because of the Iran and Israel war, the levy is being postponed — is quite interesting, if not laughable.”

The ESSDRL, passed under the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), was aimed at mobilising funds to reduce Ghana’s mounting $3.1 billion energy sector debt.

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However, widespread concern over its potential to hike fuel prices and aggravate economic pressures sparked resistance from opposition MPs, civil society organisations, and industry players.

Adomako-Mensah also highlighted what he sees as the government’s inconsistent treatment of global economic shocks.

“A few months ago, they were vehemently opposed to our assertion that the Russia-Ukraine war was having a toll on our economy,” he noted.

“Now they want Ghanaians to believe that a conflict in the Middle East is enough reason to delay a levy they claimed wouldn’t affect fuel prices. I don’t think this explanation will suffice.”

The Ghana Revenue Authority (GRA) officially confirmed on 14 June that implementation of the ESSDRL had been indefinitely postponed, following consultations with key stakeholders, including the Chamber of Oil Marketing Companies (COMAC).

The decision has drawn criticism from the Minority Caucus in Parliament, who denounced the move as “shameful” and accused the government of poor planning, inconsistency, and weak economic leadership.