Minority declares nationwide campaign against energy sector levy

• Posted on June 10, 2025June 10, 2025
• by Nana Kwesi Coomson
• Comment

The Minority in Parliament has strongly criticised the government’s decision to proceed with the controversial Energy Sector Recovery Levy, warning of a sustained nationwide campaign to resist what they describe as a “draconian” and unjust tax measure.

In a press briefing on Monday, June 9, the caucus stated that it had become clear that the government intended to forge ahead with the implementation of the levy despite widespread opposition.

In response, they announced a series of planned actions aimed at mobilising public resistance and demanding greater accountability.

“It is already clear that the government intends to go ahead with the implementation of this draconian levy,” the Minority said.

“We want to advertise that we would be embarking on the following: We will continuously engage the people of Ghana, civil society groups, driver unions and the media to showcase the true impact of these draconian taxes and the negative levy that the government is imposing on us.”

The Minority also reiterated its support for driver unions, the Chamber of Oil Marketing Companies, and other stakeholders who have openly called for the levy to be withdrawn or at least subjected to broader consultation.

“We would continue to stand with groups of honest Ghanaians, the driver unions, the Chamber of Oil Marketers who are opposing the levy or asking government to pull back and to engage better—not to go by this midnight introduction into Parliament and using their numbers to push it through,” the group declared.

“We know the government has a lot of goodwill, but this is not the way to do things.”

Echoing concerns from industry players, the Minority warned that the new levy would worsen the already heavy tax burden on fuel, pushing the total tax component at the pump to approximately 26%.

“We will continue to stand in solidarity with the Chamber of Oil Marketing Companies in their position that this downstream sector is already heavily over-taxed,” they stated.

“If you add this new levy, effectively about 26% of what you are paying at the pump is all taxes.”

They called on the government to withdraw the levy and adopt “less painful and more pragmatic options” for dealing with the financial challenges in the energy sector.

The levy, passed under the Energy Sector Levy (Amendment) Bill, 2025, on June 3, is meant to raise revenue to address Ghana’s power sector debt and ensure a stable electricity supply.

It is expected to take effect on June 16.