Ghana’s Parliament has approved the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on petroleum products.
The move aims to generate an additional GH¢5.7 billion in revenue annually to address the country’s energy sector debt and ensure stable power supply.
According to Finance Minister Dr. Cassiel Ato Forson, the energy sector debt currently stands at $3.1 billion, with $3.7 billion required to clear the arrears fully. Furthermore, the government needs an additional $1.2 billion to procure fuel for thermal power generation in 2025.
Despite concerns raised by the Minority Caucus, the bill was approved, with the Majority asserting that the levy is necessary to address the energy sector’s financial challenges.
Dr. Forson assured that the levy increase will not result in a rise in the ex-pump price of fuel, attributing the stability to the strong performance of the Ghana Cedi.
The Minority Caucus expressed strong opposition to the levy, describing it as an “inappropriate burden” on Ghanaians. They staged a walkout during the approval process, arguing that the Majority lacked the required numbers to take a binding decision on the bill.
The passage of the bill is expected to provide a much-needed boost to the energy sector, enabling the government to address its financial obligations and ensure a stable power supply.
However, the controversy surrounding the levy highlights the ongoing debates about the best approach to resolving Ghana’s energy sector challenges.