The Ministry of Energy has responded to critics who have accused the government of shortchanging Ghanaians following the recent passage of the Energy Sector Levy (Amendment) Bill, 2025.
The bill, approved by Parliament on Tuesday, introduces a GHS1 tax on all petroleum products as part of government efforts to rescue Ghana’s struggling energy sector, which is currently burdened with debts estimated at $3.1 billion.
While some Ghanaians have expressed concerns over the potential impact of the levy, many agree that the tax would be acceptable if used transparently and for its intended purpose—to stabilise the energy sector and ensure consistent power supply.
Finance Minister Dr. Cassiel Ato Forson, who moved the bill, explained that the effect of the new tax would be neutralised by recent gains made by the Ghanaian cedi.
He noted that consumers are unlikely to experience a rise in fuel prices at the pumps as a result.
However, the bill sparked strong resistance from the Minority in Parliament, with Minority Leader Alexander Afenyo-Markin accusing the government of reneging on its promise in the 2025 budget not to introduce any new taxes.
The Minority staged a walkout during the bill’s passage, calling it ill-timed and insensitive to current economic hardships.
Responding to the backlash, the Head of Communications at the Ministry of Energy, Richmond Rockson Esq., on Morning Starr with Naa Dedei Tettey addressed the issue.
He emphasised that the government had widely consulted stakeholders before proposing the levy, describing it as the only viable intervention to save the energy sector from collapse.
Rockson blamed the previous government for what he called reckless management of the sector, citing key issues.
He highlighted an excessive procurement costs, poor handling of Electricity Company of Ghana (ECG) contracts, and massive technical and commercial losses—currently estimated at 40 percent.
Rockson added that Ghana’s Independent Power Producer (IPP) debts alone stand at nearly \$2 billion, with the sector facing a monthly deficit of over GHS2 billion.
“With governance, you assess the situation as you move on. And I’ve seen that there’s a deliberate attempt by people to equate this to some taxes that have been abolished. If we did not have this challenge, there’s absolutely no way this would have been introduced. If there were alternatives, it would have consulted wisely. The ministry has consulted wisely with stakeholders. Every sector player will tell you that there’s been engagement on how to deal with the power sector challenges.
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“If this challenge – if someone was not reckless with procurement, with ECG, if someone was not – if we’re not ATC – Aggregate, Technical and Commercial loss of about 40 percent, we wouldn’t be where we are today. If the IPP debts were not as it is now, almost $2 billion, if we didn’t have 80 billion cedis, we didn’t have a deficit of about 2 billion cedis each month, there’s no way governments would introduce this net. There wouldn’t be any business for that. But if you have a sector saddled with debt, a recurring expenditure like fuels, and you don’t have any dedicated fund for it, it becomes difficult.”
“So the government of Ghana is calling on the people that shoulder the burden government. Fortunately, gains have been made. So it’s not as if fuel prices were at 17 and you are adding one CV to it. They moved from 17 to 11 and 12. So if these interventions are made, we are asking that the people, that they support the government through these difficult times to ensure that these structural changes are made and are moving forward. There will be light at the tunnel.”
Meanwhile, government has assured Ghanaians that the levy will be reviewed periodically to ensure accountability and effectiveness.
Source: Ghana/Starrfm.com.gh/Hamdia Mohammed
