Petroleum products will now be subject to a GH¢1 charge after Parliament of Ghana approved the Energy Sector Levy (Amendment) Bill, 2025.
The contentious bill was approved on Tuesday, June 3, 2025, with the goal of generating more money to pay off the country’s crippling energy sector debt and guarantee a steady supply of electricity.
The overall debt of the energy sector as of March 2025 is US$3.1 billion, according to Finance Minister Dr. Cassiel Ato Forson, who laid the measure under a certificate of urgency.
He added that in order to pay off this debt in full, at least US$3.7 billion will be needed, and an extra US$1.2 billion will be needed to buy the fuel that thermal power plants need to run throughout 2025.
Consumers would not immediately see a price increase as the Minister promised Parliament that the effects of the new charge on ex-pump prices would be “absorbed by the gains made from the strong performance of the Ghana Cedi.”
The Minority Caucus, on the other hand, strongly opposed the law, calling it an unwarranted burden on Ghanaians.
They contended that the Majority side lacked the necessary numbers to make a legally binding judgment on the measure, and their resistance resulted in a walkout during the approval process.
Majority Leader Mahama Ayariga had fervently argued for the levy prior to the vote, presenting it as a necessary communal sacrifice to put an end to the ongoing “dumsor” power struggles.
He made a conscious effort to set the new levy apart from the highly unpopular E-levy, which the government recently abolished.
In order to ensure a steady power future, Mr. Ayariga urged Ghanaians to give “one cedi, just one cedi” each liter of fuel.
The enactment of this measure is anticipated to alleviate the financial difficulties of the energy sector by bringing in an extra GH¢5.7 billion in revenue per year.
Deep disagreements on how to address Ghana’s energy sector issues are highlighted by the Minority’s departure, despite the government’s insistence that the strong Cedi will protect customers from direct price rises.
