Parliament has passed the Energy Sector Levy (Amendment) Bill, 2025, introducing a GHS1 increase in the levy on petroleum products. The new measure is projected to raise an additional GHS5.7 billion to help reduce mounting energy sector debts and support the delivery of reliable electricity across the country.
Presenting the bill on the floor of Parliament on Tuesday, June 3, Finance Minister, Dr. Cassiel Ato Forson disclosed that Ghana’s energy sector debt currently stands at $3.1 billion, with at least $3.7 billion needed to fully clear it.
He added that the government requires an additional $1.2 billion in 2025 to procure fuel for thermal power generation.
Dr. Forson assured that the levy increment would not lead to an increase in ex-pump fuel prices, a concern many Ghanaians have expressed in light of current economic pressures.
However, the bill’s passage did not go without controversy. The Minority Caucus strongly opposed the measure, describing it as ill-timed and burdensome. In protest, the Minority staged a walkout, insisting that the Majority lacked the necessary numbers to legally pass the bill.
Despite the walkout, the Majority side proceeded with the approval, citing the urgent need for financial interventions to stabilize Ghana’s power sector and reduce reliance on debt.
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Meanwhile, the Minority has announced plans to stage protests in the coming days against the government’s decision to increase the price of petroleum products by one Ghana Cedi.
According to them, the move contradicts the government’s earlier call for commercial drivers to reduce transport fares by 15%, describing the fuel levy hike as a “stab in the back” to Ghanaians already struggling with economic hardship.
Minority Chief Whip, Frank Annoh-Dompreh told journalists in Accra on Thursday, June 5, that the government to immediately withdraw or significantly reduce the levy, warning that the opposition will escalate its actions if the demand is not met.
“This is not just about a one cedi increase, it is about the soul of our nation. If you look at the impact analysis that they did, it is suspect in my view. We urge all Ghanaians to join us in opposing this unjust, economically devastating tax that Ato and his government have forced on us.
“The Minority, in the coming days, in solidarity with the Ghanaian people, will be staging many actions to demand the withdrawal or the reversal of this tax. We consider it draconian, insensitive, and an action that depicts a government that is out of touch with the people of this country and the NDC is truly revealing its true colours,” he said.
