Parliament approves new GH¢1 fuel levy

Parliament has passed the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 charge on every litre of petroleum products.

The controversial bill, which seeks to generate additional revenue to address Ghana’s mounting energy sector debt and ensure a stable power supply, was passed late on Tuesday, June 3, 2025.

Finance Minister Dr. Cassiel Ato Forson, who presented the bill under a certificate of urgency, disclosed that as of March 2025, Ghana’s total energy sector debt stood at US$3.1 billion.

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The Minister noted that at least US$3.7 billion is needed to clear the arrears, along with an additional US$1.2 billion to purchase fuel for thermal power generation for the rest of the year.

He expressed optimism that the impact of the levy on fuel prices would be cushioned by the Ghana Cedi’s strong performance, indicating that consumers would not experience an immediate price increase.

However, the Minority Caucus who the Minister’s assurances did not sit well with described the new levy as an unfair burden on Ghanaians.

To express their opposition, they stage a walkout during the approval process, while arguing that the Majority lacked the required numbers to legitimately pass the bill.

Majority Leader Mahama Ayariga had earlier called for support, describing the GH¢1 levy as a “collective sacrifice” to permanently resolve the recurring power crisis, known as dumsor.

“This is just one cedi—just one cedi per litre to ensure we can keep the lights on,” Mr. Ayariga said.

The government estimates that the levy will generate approximately GH¢5.7 billion annually to support the stabilisation of the energy sector.

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