A fellow at the Center for Democratic Development, Ghana, Professor Stephen Asare, popularly known as Kwaku Azar, says while the Energy Sector (Amendment) Bill, 2025, which imposes GHC1 per litre levy on petroleum products may be necessary, it’s not sufficient on its own.
He believes that wrongdoers responsible for the energy sector’s challenges must be held accountable and punished.
The levy aims to stabilize the sector by increasing the energy sector shortfall and debt repayment levy.
“Our energy sector is in crisis, again,” Kwaku Azar noted in a Facebook post, highlighting a debt burden of $3.1 billion, depleted guarantees, and growing reliance on thermal generation.
Kwaku Azar outlined the rationale behind the levy, including restoring exhausted guarantees and addressing a massive shortfall due to thermal fuel costs being excluded from electricity tariffs.
“The government needs at least $1.2 billion this year alone to fuel thermal plants and avoid power outages,” he stated.
While acknowledging the positives of the levy, such as securing fuel to prevent power cuts and averting a steep rise in electricity tariffs, Kwaku Azar also pointed out the negatives. These include reducing consumers’ fuel purchasing power and adding fiscal stress on households and businesses.
“The levy may be necessary but it is not sufficient,” Kwaku Azar emphasized.
“We cannot be asked to tighten our belts while those who caused the looseness go free.”
He argued that accountability is crucial, calling for a forensic audit of the last 10 years of energy spending, prosecution of wrongdoing, and recovery of stolen funds.
Kwaku Azar proposed several measures, including ring-fencing levy proceeds for fuel and debt repayment only, quarterly public reporting on collections and usage, and demanding performance metrics from all energy sector state-owned enterprises.
He also advocated for structural reforms, such as revising tariffs to reflect real costs and accelerating investment in renewable energy.
“We cannot levy our way out of inefficiency,” he stressed.
“Let this be the last time we are being asked to pay for energy sector failure. Let it also be the first time those responsible are held to account.”
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