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Parliament has passed the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on every litre of petroleum products sold in Ghana. The bill, presented under a certificate of urgency by Finance Minister Dr. Cassiel Ato Forson, was approved on Tuesday, June 3, 2025, despite a walkout by the Minority Caucus in protest.

The newly introduced levy is part of the government’s strategy to tackle the country’s growing energy sector debt, which reached US$3.1 billion as of March 2025. According to Dr. Forson, approximately US$3.7 billion is required to clear the outstanding debt, with an additional US$1.2 billion needed to procure fuel for thermal power generation for the remainder of the year.

To address concerns about rising fuel costs, the Finance Minister assured Parliament that the levy’s effect on pump prices would be softened by the strengthening of the Ghanaian cedi. As a result, consumers are not expected to experience an immediate increase in fuel prices.

Despite this reassurance, the Minority Caucus criticized the levy, calling it an unnecessary financial burden on citizens. The opposition also questioned the legitimacy of the vote, claiming that the Majority lacked the quorum required to legally pass the bill. Their concerns led to a dramatic walkout before the final vote was taken.

Majority Leader Mahama Ayariga defended the move, arguing that the levy is critical to resolving Ghana’s ongoing power supply issues, commonly referred to as dumsor. He clarified that this new levy should not be compared to the repealed E-levy, which faced significant public resistance.

“This is a national call,” Ayariga stated. “We are asking Ghanaians to contribute just one cedi per litre of fuel to secure a stable energy future.”

The government projects that the levy will generate approximately GH¢5.7 billion annually. These funds are expected to provide significant relief to the energy sector, which has struggled with chronic financial shortfalls.

While the administration maintains that the robust performance of the local currency will cushion consumers, the Minority’s objections highlight ongoing political divisions over how best to address Ghana’s energy challenges.

Source: The Ghana Report