Parliament has passed the Energy Sector Levy (Amendment) Bill, 2025, paving the way for a GHS1 increase on all petroleum products as part of government efforts to stabilize the ailing energy sector.
Finance Minister Dr. Cassiel Ato Forson, who laid the bill before Parliament on Tuesday, explained that the new levy is crucial for raising revenue to tackle mounting debts within the energy sector.
According to him, Ghana’s energy sector currently carries a debt burden of $3.1 billion, which poses a significant threat to its sustainability.
“To help raise additional revenue to fund the needs in the power sector, the government is proposing an increase in export price of petrol, diesel and related products. The impact will be absorbed by the gains made from the strong performance of the Ghana cities. Mr. Speaker, I repeat, the impact will be absorbed by the gains made from the strong performance of the Ghana cedis.”
The proposed adjustment, according to the minister, is designed to prevent the collapse of the energy sector while ensuring a steady supply of electricity and fuel across the country.
However, the Minority Caucus has strongly opposed the move. Minority Leader Alexander Afenyo-Markin accused the government of betrayal, citing earlier assurances in the 2025 Budget that no new taxes would be introduced.
In response, Majority Leader Mahama Ayariga dismissed the claims, insisting the new levy is not a reintroduction of the scrapped e-levy but a necessary intervention to address the country’s persistent power outages, commonly referred to as ‘dumsor.’
READ: Government to Impose 1 Cedi Levy on All Petroleum Products to Forestall Energy Sector Collapse
The Minority staged a walkout during the approval process, arguing that the Majority lacked the constitutional quorum to pass the bill and declaring the process illegitimate.
Despite the opposition, the bill was passed, setting the stage for the implementation of the new levy in the coming fiscal year.
Source: Ghana/Starrfm.com.gh/Hamdia Mohammed
