Accra, Tuesday, May 3, 2025 — The Government of Ghana has proposed the introduction of a levy on petroleum products as part of efforts to address the country’s escalating energy sector debt, which currently stands at approximately $3.1 billion.
The Finance Minister, Dr. Cassiel Ato Forson, made the disclosure on the floor of Parliament on Tuesday, justifying the urgent passage of the Energy Sector Levy (Amendment) Bill, 2025 under a certificate of urgency.
According to Dr. Forson, the levy would serve as a dedicated source of funding for the energy sector and would be earmarked specifically for the procurement of essential fuel for power generation to ensure stable electricity supply.
“To help raise additional revenue to fund the needs of the power sector, Government is proposing an increase in the ex-pump price of petrol, diesel, and related products,” Dr. Forson explained. “The impact would be absorbed by the gains made from the strong performance of the Ghana Cedi.”
He assured the House that simulations conducted by the Ministry indicate that despite the new levy, consumers are unlikely to experience any price hikes in the next pricing window due to the appreciation of the local currency.
“Mr. Speaker, our simulation suggests that there will be no increase in the ex-pump price of petrol and diesel in the next window beginning today, if the levy is imposed,” he noted. “This will ensure that Ghana enjoys stable electricity.”
Backing the Finance Minister’s proposal, the Majority Leader and Leader of Government Business, Hon. Mahama Ayariga, described the levy as a reasonable and necessary step to avert a looming energy crisis.
“What is before us is the Energy Sector Levy Amendment Bill, and basically, it is saying that Ghanaians should give 1 Cedi each when they buy a litre of fuel so that we can end dumsor. That’s all,” Ayariga said. “All of us should contribute just 1 Cedi pɛ so that we can end dumsor. Mr. Speaker, it is not an e-levy.”
The proposed measure comes amid a strengthening of the Ghanaian Cedi against the US Dollar, which government officials argue provides a cushion for consumers against potential price shocks.
If passed, the levy will take effect immediately, with consumers expected to begin paying the extra 1 Cedi per litre of fuel starting today.
Source: Clement Akoloh||parliamentnews360.com
