Parliament has approved the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on each litre of petroleum products.
The controversial bill, aimed at raising additional revenue to tackle the nation’s crippling energy sector debt and ensure stable power supply, was passed late on Tuesday, June 3, 2025.
Finance Minister Dr. Cassiel Ato Forson, who laid the bill under a certificate of urgency, revealed that the total energy sector debt stood at US$3.1 billion as of March 2025. He added that at least US$3.7 billion is needed to clear the arrears, with an additional US$1.2 billion required to procure fuel for thermal power generation throughout the year.
Dr. Forson assured Parliament that the impact of the levy on fuel prices would be mitigated by the gains from the Ghana Cedi’s strong performance, stating that consumers would not face an immediate hike in prices.
Despite these assurances, the Minority Caucus strongly opposed the bill, calling it an unfair burden on Ghanaians. They staged a walkout during the approval process, arguing that the Majority lacked the necessary numbers to legitimately pass the bill.
Majority Leader Mahama Ayariga had earlier appealed for support, describing the GH¢1 levy as a “collective sacrifice” to permanently end the recurring power crisis, popularly known as dumsor. He was careful to distinguish the levy from the unpopular Electronic Transfer Levy (E-Levy), which was recently repealed.
“This is just one cedi—just one cedi per litre to ensure we can keep the lights on,” Mr. Ayariga said.
The government projects the levy will generate an estimated GH¢5.7 billion annually to help stabilise the energy sector.
While authorities insist the strong cedi will cushion consumers from price shocks, the Minority’s walkout underscores the growing political divide over how best to resolve Ghana’s energy crisis.
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