Parliament Approves GH¢1 Fuel Levy to Tackle Energy Debt Amid Minority Walkout

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Parliament has approved the Energy Sector Levy (Amendment) Bill, 2025, paving the way for a GH¢1 increase in the levy on petroleum products in a bid to raise critical funds to tackle Ghana’s mounting energy sector debt.

The government expects the new levy to generate an estimated GH¢5.7 billion in revenue, which will be directed toward reducing the country’s US$3.1 billion energy debt and securing a stable electricity supply.

Presenting the bill on the floor of Parliament, Finance Minister Dr. Cassiel Ato Forson disclosed that a total of US$3.7 billion is required to fully clear the arrears. Additionally, the government needs a further US$1.2 billion in 2025 to purchase fuel for thermal power generation.

Dr. Forson emphasized that the levy would not result in an immediate increase in fuel prices at the pumps due to the strong performance of the Ghana cedi, which is expected to cushion consumers from any short-term price hikes.

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However, the approval process was not without controversy. The Minority Caucus strongly opposed the measure, describing the timing of the tax as inappropriate. They staged a dramatic walkout during the vote, alleging that the Majority side lacked the constitutionally required numbers to pass the bill.

Despite the protest, the bill was passed by the Majority in Parliament under a certificate of urgency, as the government insists it is a necessary step to restore stability in the power sector and prevent further disruptions in electricity supply.

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The implementation of the levy is expected to begin immediately.

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