Ghana’s Parliament has approved the Energy Sector Levies (Amendment No. 2) Bill, 2025, which officially eliminates the government subsidy on marine gas oil while significantly increasing the Energy Sector Shortfall and Debt Repayment Levy by 193 pesewas per litre.
The amendment, passed during a recent parliamentary sitting, is part of a broader initiative aimed at addressing persistent abuse and smuggling linked to the marine gas oil subsidy regime. Government officials argue that the previous subsidy framework had lost its integrity and effectiveness due to loopholes exploited for illicit gains.
According to government projections, the revised levy is expected to generate approximately GH¢71 million in additional revenue. These funds will be directed toward reducing the nation’s energy sector debt and managing financial shortfalls that have long burdened the sector.
Deputy Finance Minister Thomas Nyarko Ampem, addressing Parliament during deliberations, assured stakeholders that the removal of the marine gas oil subsidy would not impact premix fuel, which is essential for artisanal fishing communities.
“The supply of premix fuel remains uninterrupted. This amendment only affects marine gas oil, not premix,” he clarified.
The move reflects the government’s resolve to instill financial discipline within the energy sector while closing loopholes that have previously led to revenue leakages.
By eliminating the subsidy and strengthening levies, authorities hope to create a more sustainable framework for energy sector financing, reduce the opportunity for smuggling, and build public confidence in the government’s subsidy programs.
