Parliament Approves GH¢1 Fuel Levy To Address Power Outages
Parliament Approves GH¢1 Fuel Levy To Address Power Outages
Parliament has passed the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on every litre of petroleum products, including petrol and diesel.
The new levy is expected to generate approximately GH¢5.7 billion in revenue, which government officials say will be used to reduce mounting energy sector debts and address Ghana’s recurring power supply issues—popularly known as dumsor.
During the debate on the floor of Parliament, Minority Leader Dr. Cassiel Ato Forson explained the dire financial state of the energy sector and the urgent need for intervention.“A minimum of $3.7 billion is needed to clean up the overall energy sector’s indebtedness for us to have a clean slate,” Dr. Forson said.
“In the year 2025 alone, the government will require an additional $1.2 billion to procure essential fuel for thermal power generation. The power sector risks imminent collapse if these unsustainable debts are not resolved.”
He further noted that while the levy would technically raise fuel prices at the pump, consumers are unlikely to feel the impact immediately due to gains from the Ghana cedi’s recent strong performance. “The government is proposing an increase in the pump price of diesel, petrol, and related products. The impact will be absorbed by the gains made from the strong performance of the Ghana cedi. This means consumers will not have to pay extra for the price of diesel and petrol, beginning today, June 3.”
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Despite government assurances, the Minority Caucus vehemently opposed the levy, calling it inappropriate and untimely. They subsequently staged a walkout prior to the approval vote.
The Energy Sector Levy Amendment comes at a time when Ghanaians are grappling with frequent power outages and rising living costs, raising concerns about the affordability and long-term impact of the new charge on ordinary citizens.
Government introduces Energy Sector Levy Amendment Bill, seeking to impose ₵1 tax on all petroleum products to fix dumsor…#GHOneNews #EIBNetwork #GHOneTV #NewsAlert pic.twitter.com/i3XM6N0Cfr
— GHOne TV (@ghonetv) June 3, 2025
Source: Nkonkonsa.com
