The action to tackle the nation’s growing energy sector debt, Ghana’s Parliament has officially approved the Energy Sector Levy (Amendment) Bill, 2025.
The new legislation imposes a GHS1 increase on the levy for petroleum products, anticipated to yield an additional GHS5.7 billion in revenue.
During his address to Parliament on June 3, Finance Minister Dr. Cassiel Ato Forson emphasized the critical need for funding to manage the country’s energy-related debts, which currently amount to $3.1 billion.
He noted that a total of $3.7 billion is required to settle outstanding arrears, alongside an estimated $1.2 billion necessary for fuel purchases for thermal power generation in 2025.
Dr. Forson reassured lawmakers that this tax increase would not lead to higher ex-pump fuel prices, attributing this stability to recent improvements in the local currency’s performance.
However, the approval of the Energy Sector Levy (Amendment) Bill has ignited not only debate in Parliament but also widespread public concern.
Critics argue that the GHS1 increase on petroleum products is less about addressing energy debts and more about government mismanagement.
Many citizens feel that they are being unfairly burdened while the underlying issues, such as inefficiency and corruption within the energy sector, remain unaddressed.
While Dr. Forson assured lawmakers that the tax hike wouldn’t lead to increased fuel prices, skepticism looms large among consumers who are already grappling with rising living costs.
The Minority Caucus’s dramatic walkout during the vote reflects a growing frustration with what they perceive as a lack of transparency and accountability in government spending.
Public sentiment is divided; some support the levy as a necessary step to stabilize the energy sector, while others view it as another example of policymakers prioritizing revenue over the welfare of everyday Ghanaians.
As protests and discussions unfold across social media platforms, it’s clear that this issue has sparked a broader conversation about fiscal responsibility and governance in Ghana.
