Parliament has approved the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on each litre of petroleum products. The bill, passed on Tuesday, June 3, 2025, aims to generate additional revenue to address the country’s mounting energy sector debt and ensure a stable electricity supply.
Finance Minister Dr. Cassiel Ato Forson, who presented the bill under a certificate of urgency, revealed that Ghana’s energy sector debt stood at US$3.1 billion as of March 2025. He noted that at least US$3.7 billion is needed to clear the outstanding liabilities, in addition to US$1.2 billion required to purchase fuel for thermal power generation throughout the year.
Dr. Forson assured Parliament that the levy’s impact on fuel prices would be mitigated by the recent gains in the Ghana Cedi’s value, suggesting that consumers would not face an immediate increase in ex-pump prices.
The Minority Caucus strongly opposed the bill, arguing it would impose an undue burden on Ghanaians. They contended that the Majority lacked the necessary quorum to pass the legislation and staged a walkout during the approval process in protest.
In defense of the bill, Majority Leader Mahama Ayariga described the levy as a vital step toward ending the persistent power outages known locally as “dumsor.” He emphasized the need for collective sacrifice and sought to differentiate the levy from the now-repealed Electronic Transfer Levy (E-levy), which was widely unpopular.
“This is not the E-levy. This is a one-cedi-per-litre contribution to ensure reliable power,” Ayariga stated during the debate.
The government projects that the levy will raise approximately GH¢5.7 billion annually, which will be used to address the sector’s financial challenges.
Despite government assurances, the Minority’s walkout underscores the deep political divide over how best to resolve the energy crisis, which continues to impact households and businesses across the country.
