The International Monetary Fund (IMF) has strongly endorsed Ghana’s new GH₵1 fuel levy, describing it as a smart and timely step toward energy sector reform and fiscal stability.
Known officially as the Energy Sector Shortfall and Debt Repayment Levy, the charge applies GH₵1 per litre of petroleum products to help resolve persistent deficits in the energy sector. The move aligns with Ghana’s commitments under the IMF’s Extended Credit Facility (ECF) programme.
Julie Kozack, Director of the IMF’s Communications Department, highlighted the measure’s importance during a recent press briefing. “This new levy will help generate essential revenue to fix long-standing challenges in Ghana’s energy sector,” she said. “It also supports Ghana’s efforts to meet its fiscal targets under the IMF-backed programme.”
Although the levy has drawn criticism, especially from the Minority in Parliament who argue it will increase financial pressure on consumers, the government insists the impact on fuel prices will be minor. Officials argue that, even with the levy, current pump prices remain lower than during previous inflation spikes.
The government has postponed the levy’s start date from June 9 to June 16, 2025, after talks with the Chamber of Oil Marketing Companies. This delay offers a brief period for further stakeholder consultations.
Consumer groups like the Chamber of Petroleum Consumers (COPEC) are urging the government to use this window for more dialogue. They want transparency about how the revenue will be spent.
As Ghana continues efforts to stabilize its economy and reform its energy sector, the IMF’s backing offers global validation. Still, building local consensus remains an ongoing challenge.
