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The Ghana Revenue Authority (GRA) has begun implementing the newly revised Energy Sector Levy following the enforcement of the Energy Sector Levy (Amendment) Act, 2025 (Act 1141), which officially takes effect today, Wednesday, July 16, 2025.
This move comes after the government postponed the levy’s initial rollout earlier this year to allow for a review of global market conditions and to preserve recent gains in domestic fuel price stability. After consultations between the Ministry of Finance, the Ministry of Energy, and key stakeholders, authorities concluded that the levy’s implementation was now timely and necessary.
The amended law introduces significant increases in levies on petroleum products under the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL). Petrol and diesel prices are among the most affected, each seeing a GHS1.00 increase per litre under the new levy.
According to officials, the revised levy is part of a broader strategy to stabilize the economy and address longstanding financial challenges within Ghana’s energy sector. The additional revenue will be used to pay off legacy debts incurred by state-owned energy companies and support ongoing energy infrastructure projects.
Prior to the amendment, the levy on petrol stood at GHS0.95 per litre and has now been increased to GHS1.95. Diesel has similarly moved from GHS0.93 to GHS1.93 per litre. Marine Gas Oil, both local and foreign, also saw increases, while the rate for heavy fuel oil remains unchanged.
Government spokespersons have justified the levy as a necessary sacrifice to ensure reliable power generation and long-term energy security. They argue that without such interventions, Ghana risks further energy supply challenges and increased borrowing to sustain the sector.
Despite these justifications, the implementation is expected to stir public reaction, especially among transport operators and households already grappling with rising living costs. Some civil society groups have also expressed concern over the potential inflationary impact of the new levy, urging the government to ensure transparency and accountability in how the funds are managed.
The GRA has urged all fuel stations and distributors to update their pricing to reflect the new levy, while consumers are advised to expect upward adjustments in fuel prices at the pumps starting today.
The Energy Sector Levy, originally introduced to address inefficiencies in the energy value chain, has become a key revenue-generating mechanism for successive governments. With this latest revision, the government hopes to accelerate debt repayment and sustain essential services across the country’s power and energy grid.
