Parliament Approves GHS 1 Energy Levy Increase to Address Sector Debts as Finance Minister Assures No Impact on Ex-Pump Prices
Parliament has passed the Energy Sector Levy (Amendment) Bill, 2025, introducing a GHS1 increase on levies imposed on petroleum products, as the government seeks to stabilise the country’s energy supply and reduce the sector’s rising debt burden.
The approved measure is projected to raise an additional GHS5.7 billion in revenue, a move Finance Minister Dr Cassiel Ato Forson described as “critical” to addressing legacy liabilities and funding fuel procurement for thermal power generation in 2025.
Speaking during the parliamentary debate on Tuesday, June 3, Dr Forson revealed that the energy sector currently faces a debt stock of $3.1 billion, and that an estimated $3.7 billion is needed to clear outstanding arrears.
He added that a further $1.2 billion will be required to procure fuel to support generation capacity.
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 Cedi, meaning consumers would not experience an immediate price hike.
However, the amendment faced stiff resistance from the Minority Caucus, who staged a walkout during the approval process.
Despite the protest, the Majority side pushed through the new levy, positioning it as necessary to prevent further deterioration in the financial health of the energy sector, which has long been plagued by inefficiencies, payment arrears, and supply disruptions.
