Parliament approves new GH¢1 fuel levy after minority walkout

• Posted on June 4, 2025June 4, 2025
• by Nana Kwesi Coomson
• Comment

Parliament has approved the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on petroleum products.

The controversial bill, intended to raise additional revenue to address the nation’s crippling energy sector debt and ensure stable power supply, was passed late today, Tuesday, June 3, 2025.

The Finance Minister, Dr. Cassiel Ato Forson, who laid the bill under a certificate of urgency, stated that the energy sector’s total indebtedness stands at US$3.1 billion as of March 2025.

He further explained that a minimum of US$3.7 billion is required to fully clear this debt, with an additional US$1.2 billion needed to procure essential fuel for thermal power generation throughout 2025.

The Minister assured Parliament that the impact of the new levy on ex-pump prices would be “absorbed by the gains made from the strong performance of the Ghana Cedi”, meaning consumers would not experience an immediate price hike.

However, the Minority Caucus vehemently opposed the bill, describing it as an inappropriate burden on Ghanaians.

Their resistance culminated in a walkout during the approval process, as they argued that the Majority side lacked the requisite numbers to make a binding decision on the bill.

Prior to the vote, Majority Leader Mahama Ayariga had passionately appealed for the levy, framing it as a necessary collective sacrifice to end the persistent power crises known as “dumsor”.

He explicitly sought to distinguish the new levy from the widely unpopular E-levy, which was recently repealed by the government.

Mr Ayariga urged Ghanaians to contribute “one cedi, just one cedi” per litre of fuel to secure a stable power future.

The passage of this bill is expected to generate an additional GH¢5.7 billion in revenue annually to address the energy sector’s financial woes.

While the government maintains that the strong Cedi will cushion consumers from direct price increases, the Minority’s walkout highlights deep divisions over the approach to resolving Ghana’s energy sector challenges.