Parliament Passes GH¢1 Fuel Levy to Address Energy Sector Debt Despite Minority Walkout
ACCRA – June 4, 2025 — Ghanaians will now pay an additional GH¢1 per litre on petroleum products following the passage of the Energy Sector Levy (Amendment) Bill, 2025, which Parliament approved under a certificate of urgency on Tuesday, June 3.
The new levy is expected to generate GH¢5.7 billion annually to help bridge massive funding gaps and tackle mounting debt within Ghana’s struggling energy sector.
$3.1 Billion Debt Crisis
According to Finance Minister Dr. Cassiel Ato Forson, Ghana’s energy sector is currently burdened with a total debt of US$3.1 billion as of March 2025. To fully clear the debt and meet essential fuel needs for thermal power generation in 2025, the country would require at least US$4.9 billion, including US$1.2 billion in fuel procurement.
“The levy is a necessary fiscal intervention to stabilise the energy sector, sustain power supply, and avoid blackouts,” Dr. Forson stated.
He assured Parliament that consumers would not immediately feel the pinch of the new levy at the pumps, attributing this to the “strong performance of the Ghana Cedi,” which he said has helped moderate ex-pump price increases.
Minority Rejects Bill, Stages Walkout
The Minority in Parliament fiercely opposed the bill, describing it as an unjust burden on already overtaxed citizens amid ongoing economic hardship.
In protest, Minority MPs staged a walkout during the approval process to signal their disapproval of the government’s handling of the energy sector and its decision to pass the levy without broader public consultation.
Consumer Impact
Though the Finance Ministry maintains that price stability will be preserved in the short term, economists warn that rising global oil prices or local currency depreciation could still translate the new levy into higher pump prices, directly affecting transport costs and general inflation.
The Energy Sector Levy, originally introduced in 2015 to address power sector inefficiencies, has seen multiple amendments over the years as the state continues to grapple with legacy debts, fuel procurement shortfalls, and unpaid subsidies owed to power producers and suppliers.
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