The International Perspective for Policy and Governance (IPPG) has expressed concern over the recent passage of the Energy Sector Levies (Amendment) Bill, 2025, which introduces a new GHS 1 Energy Sector Shortfall and Debt Recovery Levy (ESSDRL) per litre of fuel.
“Trust is built not only on outcomes but on the transparency and inclusiveness of policy processes—and in this case, that was lacking,” said Seth Owusu-Mante, IPPG Research Fellow.
IPPG criticised the swift passage of the levy, citing limited input from the public, civil society, and industry players as a missed opportunity for participatory governance.
The think tank noted that the new levy brings the total tax and levy components on fuel to over 26% of the ex-pump price, undermining public trust.
The inclusion of Liquefied Petroleum Gas (LPG) in the levy has also raised concerns, warning that it could derail Ghana’s clean cooking agenda and undermine the government’s Cylinder Recirculation Model (CRM) and national LPG penetration target of 50% by 2030.
“Nearly a decade after the enactment of ESLA, the energy sector is still burdened by deepening debt. Despite substantial revenue mobilization, persistent inefficiencies and weak governance continue to hinder sector recovery,” Mr. Owusu-Mante observed.
IPPG has called on the government to conduct a Regulatory Impact Assessment, introduce a sunset clause, institutionalize stakeholder engagement, and tackle energy sector inefficiencies to ensure transparency and accountability in the implementation of the levy.
