Parliament Approves GHS1 Increase in Fuel Levy to Address Energy Debt
The new levy aims to raise GHS5.7 billion to help clear Ghana’s energy sector arrears
- Parliament approved a GHS1 increase in the fuel levy to raise funds for the energy sector
- The levy hike aims to generate GHS5.7 billion to reduce the sector’s $3.1 billion debt
- Finance Minister confirmed the increase will not affect fuel pump prices
Parliament has passed the Energy Sector Levy (Amendment) Bill, 2025, authorizing a GHS1 increase in levies on petroleum products.
The government projects that this move will generate an estimated GHS5.7 billion to help ease the country’s ballooning energy sector debt and ensure a stable power supply.
Finance Minister Dr. Cassiel Ato Forson revealed that Ghana’s energy sector is currently burdened with $3.1 billion in debt, with a total of $3.7 billion needed to clear all outstanding arrears.
He also disclosed that an additional $1.2 billion is required to secure fuel for thermal power generation throughout 2025.
Dr. Forson assured Parliament that the new levy will not affect the ex-pump price of fuel.
However, the measure was met with stiff resistance from the Minority Caucus, who criticized it as ill-timed and unjustified.
In protest, they walked out of the chamber, questioning the legitimacy of the vote by claiming the Majority lacked the necessary quorum for a binding decision.
