Accra, Ghana – June 3, 2025 – In a decisive move to tackle the nation’s escalating energy sector debt, Ghana’s Parliament has approved the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on petroleum products.
The bill, presented by Finance Minister Dr. Cassiel Ato Forson under a certificate of urgency, aims to generate approximately GH¢5.7 billion annually. These funds are earmarked to address the energy sector’s total indebtedness, which stands at US$3.1 billion as of March 2025. An additional US$1.2 billion is required to procure essential fuel for thermal power generation throughout the year.
Dr. Forson assured Parliament that the impact of the new levy on ex-pump prices would be mitigated by the strong performance of the Ghana Cedi, suggesting that consumers would not experience an immediate price hike.
Despite the government’s assurances, the Minority Caucus vehemently opposed the bill, describing it as an inappropriate burden on Ghanaians. Their resistance culminated in a walkout during the approval process, as they argued that the Majority side lacked the requisite numbers to make a binding decision on the bill.
Majority Leader Mahama Ayariga defended the levy, framing it as a necessary collective sacrifice to end the persistent power crises known as “dumsor.” He emphasized that the levy is distinct from the recently repealed E-levy, urging Ghanaians to contribute “one cedi, just one cedi” per litre of fuel to secure a stable power future.
The passage of this bill is expected to provide a dedicated source of funding for the procurement of essential fuel necessary for consistent power generation, addressing the under-recovery of costs and challenges with fuel procurement that have plagued Ghana’s energy sector.
Analysts note that the success of the levy will depend on the sustained strength of the cedi and transparent management of the funds to improve energy sector performance.
As Ghana navigates this critical juncture, the government emphasizes that the levy is a strategic intervention to ensure stable power supply and promote the long-term financial health of the energy sector.
Tags: #EnergySectorLevy #GhanaParliament #FuelLevy #EnergyDebt #Dumsor #GhanaEconomy