President John Dramani Mahama has officially signed into law the Energy Sector Levy (Amendment) Bill, 2025, cementing what the government describes as a critical financial intervention despite widespread public criticism.
The President assented to the Bill on Thursday, June 5, 2025, two days after it was passed by Parliament on Tuesday, June 3.
The new law imposes a GH¢1 tax on every litre of petroleum product — a move that has sparked strong reactions from sections of the public, transport unions, and the Minority in Parliament, who argue it places an additional burden on already struggling consumers.
However, government officials have defended the measure, citing the urgent need to address the energy sector’s ballooning legacy debt, currently estimated at around $3.1 billion.
Presenting the bill in Parliament, Finance Minister Dr. Cassiel Ato Forson assured Ghanaians that the levy would not lead to an increase in fuel prices, pointing to the recent appreciation of the cedi as a mitigating factor.
He explained that proceeds from the levy will be used to purchase fuel for electricity generation, with the aim of reducing power outages and stabilising the national grid.
President Mahama, in an earlier statement, acknowledged that the GH¢1 levy is a difficult but necessary step to prevent Ghana’s energy sector from sliding into a deeper crisis.
The government has also assured Ghanaians the levy will be used for its intended purpose, vowing that there will be a periodical assessment of the levy.
Source: Ghana/Starrfm.com.gh/Hamdia Mohammed
