Dr Acheampong Warns of Likely Return of Suspended GHS 1 Energy Levy Amid Sector Distress
Ghana’s government is likely to reintroduce the suspended GHS 1 energy levy in the coming weeks as mounting fiscal pressure and a deteriorating energy sector compel policymakers to revisit unpopular revenue measures, according to economist and political risk analyst Dr Theo Acheampong.
Speaking on JoyNews on Tuesday, June 24, Dr Acheampong said government officials, including the Finance and Energy Ministers, are “analysing and assessing” the country’s exposure to rising global oil prices, particularly amid heightened geopolitical tensions in the Middle East.
“I won’t be surprised if the GHS 1 levy comes back in the coming weeks,” he remarked, noting that while the earlier iteration of the levy met with significant public resistance, certain constituencies were more receptive, giving the administration some political room for manoeuvre.
Originally introduced to support the financially distressed energy sector, the GHS 1 per litre levy was suspended following backlash from civil society organisations and opposition lawmakers. However, with energy sector arrears widening and pressure mounting on public finances, the levy is now being reconsidered as a stop-gap measure.
Energy Sector Under Duress
Ghana’s energy sector is contending with a mix of structural inefficiencies, rising utility debts, and increasing reliance on imported fuels. Power generation shortfalls and liquidity constraints across state-owned utilities have compounded the challenge, with analysts warning of long-term sustainability risks.
“We have serious challenges within Ghana’s energy sector, and we need to do something about it,” Dr Acheampong said, underscoring the urgency of raising sector-specific revenue.
Geopolitical developments, particularly tensions involving Iran, have added an external layer of vulnerability, exposing Ghana’s fuel-import-dependent energy mix to global oil price volatility.
Accountability Remains a Sticking Point
Dr Acheampong also highlighted persistent concerns around the lack of transparency in the use of past energy levies, especially those collected under the Energy Sector Levies Act (ESLA). Critics have long questioned the effectiveness of such levies, citing weak parliamentary oversight and limited public disclosure.
“There are concerns as to how monies that have been collected in the past have been utilised,” he noted, calling for robust governance frameworks to accompany any reintroduction of the levy.
“Once we have further assurance and safeguards around the one cedi levy and what it will be used for and the Minister accounts to Ghanaians through Parliament, we may begin to see viable solutions emerge for the crisis,” he added.
