The Minority in Parliament has criticised the government’s introduction of the Energy Sector Recovery Levy, describing it as an oppressive and ill-conceived policy that will further strain the finances of already burdened Ghanaians.
Addressing the media on Monday, June 9, Minority legislators announced plans to mount a nationwide campaign against the new levy, which they labelled “draconian” and lacking in transparency.
Kojo Oppong Nkrumah, the Ranking Member on Parliament’s Economy and Development Committee, voiced strong reservations over the government’s handling of the tax, citing its rushed passage and limited public consultation.
The Energy Sector Levy (Amendment) Bill, 2025, passed by Parliament on June 3, seeks to impose an additional GH¢1 charge per litre on petroleum products.
The government says the measure is necessary to tackle a growing energy sector debt, currently estimated at $3.1 billion, and to support fuel procurement for thermal power generation in 2025.
However, the Minority and several stakeholders—including driver unions and the Chamber of Oil Marketing Companies—have condemned the levy, warning it will drive up fuel prices and worsen the cost-of-living crisis.
According to the Minority, the new charge will bring the total tax component of fuel prices to about 26%, a level they describe as unacceptable.
The group also announced a series of public engagements aimed at educating citizens on the real impact of the tax and mobilising opposition across the country.
“It is already clear that the government intends to go ahead with the implementation of this draconian levy,” the Minority said.
“We want to advertise that we would be embarking on the following: We will continuously engage the people of Ghana, civil society groups, driver unions and the media to showcase the true impact of these draconian taxes and the negative levy that the government is imposing on us.”
“We would continue to stand with groups of honest Ghanaians, the driver unions, the Chamber of Oil Marketers who are opposing the levy or asking government to pull back and to engage better—not to go by this midnight introduction into Parliament and using their numbers to push it through.”
“We know the government has a lot of goodwill, but this is not the way to do things. We will continue to stand in solidarity with the Chamber of Oil Marketing Companies in their position that this downstream sector is already heavily over-taxed. If you add this new levy, effectively about 26% of what you are paying at the pump is all taxes.”
Meanwhile, following discussions with stakeholders, the government has postponed the levy’s implementation from June 9 to June 16, 2025.
Source: Ghana/Starrfm.com.gh/Hamdia Mohammed
