Parliament Passes GH¢1 Fuel Levy to Support Energy Sector Recovery
Parliament has approved the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 charge on each litre of petroleum products sold in Ghana. The new levy, passed during a sitting on Tuesday, June 3, is part of the government’s plan to raise funds to tackle mounting debts in the energy sector and improve electricity reliability across the country.
Finance Minister Dr. Cassiel Ato Forson, who presented the bill under a certificate of urgency, warned that Ghana’s energy sector is burdened by a debt of approximately US\$3.1 billion as of March 2025. He added that a total of US\$3.7 billion would be needed to clear the outstanding liabilities, with an extra US\$1.2 billion required to purchase fuel for thermal power plants through the end of the year.
Dr. Forson attempted to ease public concern by assuring Parliament that the new charge would not immediately affect fuel pump prices. He attributed this to the recent strengthening of the Ghanaian Cedi, which he said had created a buffer against inflationary pressures.
Despite the government's assurances, the bill faced strong resistance from the Minority in Parliament. Members of the opposition walked out during the voting process, arguing that the levy would impose unnecessary financial pressure on citizens already struggling with economic challenges. They also questioned the Majority's ability to pass the bill without the constitutionally required number of MPs present.
In the lead-up to the vote, Majority Leader Mahama Ayariga defended the bill as a national necessity.
He urged Ghanaians to view the GH¢1 fuel levy as a patriotic contribution to ending erratic power supply, commonly referred to as (dumsor). Ayariga emphasized that the measure should not be confused with the recently repealed Electronic Transfer Levy (E-Levy), which faced public backlash due to its impact on digital transactions.
“This is about keeping the lights on,” Ayariga said. “It’s one cedi per litre, a shared commitment to fixing our energy future.”
The levy is projected to raise around GH¢5.7 billion annually. According to the Finance Ministry, the funds will be directed towards paying off legacy debts and supporting fuel procurement for electricity production, thereby stabilizing power generation and reducing the risk of outages.
While the government frames the policy as a vital step toward energy sustainability, critics remain skeptical. The Minority continues to argue that Ghanaians should not be made to bear the brunt of financial mismanagement in the power sector.
The passage of the bill marks a critical moment in Ghana’s ongoing struggle to balance economic realities with the demands of infrastructure and public service delivery. As the levy takes effect, the public will be watching closely to see whether the promised improvements in energy reliability actually materialize.
blogpay
Total Comments: 0