Consumers in Ghana will now pay an additional GH¢1 for every litre of fuel purchased following Parliament’s approval of the Energy Sector Levy (Amendment) Bill, 2025 as announced by the Finance Minister.
The bill, introduced under a certificate of urgency by Finance Minister Dr. Cassiel Ato Forson on Tuesday, June 3, 2025, seeks to address financial shortfalls in the energy sector and facilitate debt repayment. The Minority in Parliament strongly opposed the bill, arguing that it imposes an unfair burden on Ghanaians already grappling with economic challenges.
Despite their resistance, the bill was passed, with the government maintaining that the measure is necessary to stabilize the energy sector and ensure reliable power supply.
The new levy is projected to generate an estimated GH¢5.7 billion annually, which will be used to settle energy sector arrears, reduce legacy debt, and support infrastructure maintenance. The Energy Sector Levies (Amendment) Bill, 2025 specifically calls for an upward adjustment in the Energy Sector Shortfall and Debt Repayment Levy, emphasizing the need for additional revenue to prevent further financial strain on the sector.
Proponents argue that the move will help avert potential power crises and secure long-term energy sustainability, but critics fear it will exacerbate the cost-of-living crisis for ordinary citizens. Despite these assurances, critics, including some economists and civil society groups, have likened the fuel levy to the controversial e-Levy introduced by the previous NPP administration, which was later scrapped by the Mahama led Government. Some analysts have calculated that the new fuel levy could be even more burdensome than the e-Levy, as it directly impacts transportation costs, food prices, and general inflation.
During the approval process, the Minority staged a walkout in protest, condemning the levy as ill-timed and insensitive to the economic hardships faced by Ghanaians. The Finance Minister, however, defended the policy, stating that the funds are critical to addressing systemic inefficiencies in the energy sector.
With the bill now passed, fuel prices are expected to rise immediately, sparking concerns about its ripple effects on transport costs, goods, and services. The government has assured the public that the revenue will be judiciously managed, but many remain skeptical about its impact on an already strained economy.
