A leading environmental policy expert has sharply criticised the Government of Ghana’s new GHȼ1 fuel levy, describing it as a “tired and unfair” approach that places an unsustainable burden on already struggling consumers.
Benjamin Nsiah, Executive Director of the Centre for Environment and Sustainable Energy, laments that the levy, recently approved under the Energy Sector Levies (Amendment) Bill, 2025, is both regressive and creatively bankrupt.
“The government keeps reaching into the same old toolbox. We’ve seen this playbook before, ESLA, the Energy Sector Recovery Levy, but none of them have addressed the root problems in our energy sector,” Nsiah said. “This isn’t about collecting more. It’s about managing what we’ve already collected and doing it well.”
The new levy, expected to raise GHȼ5.7 billion to support energy sector obligations, aims to help the government settle $3.1 billion in legacy energy sector debts and secure an additional $1.2 billion for fuel procurement in 2025. Finance Minister Dr. Cassiel Ato Forson insists that the added charge will not affect ex-pump fuel prices.
But many, including civil society groups and the parliamentary Minority aren’t convinced. The Minority Caucus walked out of Parliament during the bill’s approval, arguing that the vote was pushed through without the constitutionally required quorum. They’ve labelled the move inappropriate and poorly timed, citing its impact on the cost of living.
Nsiah agrees, pointing out that Ghanaian consumers have been footing the bill for years with little to show for it.
“Since 2016, we’ve had one levy after another. But the debts remain, the inefficiencies continue, and the only constant is that ordinary Ghanaians keep paying more,” he said. “Let’s call it what it is, this is a stopgap, not a solution.”
He called on the government to shift its focus from revenue mobilisation to operational reform, urging fiscal discipline, transparency, and better oversight across the energy value chain from fuel procurement to power distribution.
“For the Minister to suggest this won’t burden consumers, is frankly not accurate,” Nsiah said. “We cannot keep papering over cracks with levies. The solution lies in efficiency not extraction.”
