Finance Minister, Dr. Cassiel Ato Forson, today laid before Parliament a controversial Energy Sector Levy Amendment Bill under a certificate of urgency, proposing a new levy of GH¢1 per litre on all petroleum products sold in the country.
The measure, if approved, will impose new taxes on petrol, diesel, and other petroleum products at the ex-pump level, with the government seeking to generate urgently needed revenue to clear a ballooning US$3.1 billion debt in the energy sector.
Addressing lawmakers, Dr. Forson painted a bleak picture of Ghana’s power sector, warning that urgent fiscal action was needed to stabilize electricity generation. He revealed that the debt, accumulated as of March 2025, includes arrears to Independent Power Producers (IPPs), key State-Owned Enterprises (SOEs), and fuel suppliers.
A critical trigger for the government’s urgent request was the complete drawdown of a US$512 million World Bank IDA guarantee and a US$120 million GNPC guarantee in 2024. The government now faces an additional US$632 million shortfall to restore these key financial backstops.
Despite the planned tax, the Finance Minister was quick to reassure Ghanaians:
“Mr. Speaker, I repeat — the impact will be absorbed by the gains made from the strong performance of the Ghana Cedi. Consumers will not have to pay extra for the price of petrol and diesel beginning today.”
Dr. Forson explained that exchange rate gains had created room for the proposed tax to be implemented without affecting the ex-pump prices in the immediate term.
“Our simulations suggest there will be no increase in the price of petrol and diesel in the next pricing window beginning today if the levy is imposed,” he added.
He emphasized that the proceeds from the new levy will be ring-fenced exclusively for fuel procurement to power generation companies, which currently do not recover fuel costs through electricity tariffs.
“This levy is a strategic intervention to ensure stable power supply and promote the long-term financial health of our energy sector.”
