Parliament passes controversial GH¢1-per-litre fuel levy to tackle energy debt crisis
Ghanaians will now pay an extra GH¢1 on every litre of fuel purchased, following Parliament’s swift passage of the Energy Sector Levies (Amendment) Bill, 2025. The bill was tabled under a certificate of urgency on Tuesday, June 3, by Finance Minister Dr. Cassiel Ato Forson and approved the same day—despite fierce opposition from the Minority.
Described by the government as a lifeline for the ailing energy sector, the new levy is aimed at closing shortfalls and repaying mounting debts that threaten to destabilise the economy.
Dr. Forson told the House the amendment was essential to “raise additional revenue to support the payment of energy sector arrears, reduce legacy debt, and ensure stable power supply across the country.”
He further cautioned that without decisive action, the energy sector would continue to pose “the greatest economic and fiscal threat to the country,” potentially spiraling into a national crisis.
The bill, which saw its first reading and referral to the Finance Committee within hours, seeks to revise the Energy Sector Shortfall and Debt Repayment Levy upwards. Officials estimate the move will yield an additional GH¢5.7 billion annually.
Addressing lawmakers, the Finance Minister revealed the energy sector’s total indebtedness had hit US$3.1 billion as of March 2025.
“To fully clear this debt, a minimum of US$3.7 billion is required,” he added, “with an additional US$1.2 billion needed to procure essential fuel for thermal power generation throughout 2025.”
In a bid to soften public resistance, Dr. Forson reassured Ghanaians that the added levy’s effects at the pump would be tempered. “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,” he said, implying consumers wouldn’t feel an immediate pinch.
But the Minority in Parliament was unconvinced. Dismissing the levy as an unfair financial strain on already burdened citizens, they reportedly staged a dramatic walkout during the approval proceedings to signal their dissent.
