CSO Budget Forum Demands Introduction of Sunset Clause on GHS 1-per-litre Fuel Levy
Abdul Karim Mohammed, Coordinator of the Economic Governance Platform (EGP) and member of the Civil Society Organisations Budget Forum, has urged the government to include a sunset clause in the implementation of the Energy Sector Levy (Amendment) Bill, 2025.
The amendment bill, proposes the introduction of a GHS 1 levy on every litre of fuel purchased at the pump — a move aimed at supporting the country’s indebted energy sector.
Speaking at the Civil Society Organisations (CSO) Budget Forum held ahead of the presentation of the 2025 Mid-Year Budget Review by Finance Minister, Dr Cassiel Ato Forson, Mr Mohammed cautioned that while the levy may be necessary in the short term, it should not become a permanent fiscal burden on consumers.
“We are calling for a clearly defined sunset clause that will ensure the levy is time-bound,” he said. “This will help promote accountability and restore public confidence in the government’s management of the energy sector.”
A sunset clause is a legal provision that sets an automatic expiration date for a policy, law, or contractual obligation unless it is renewed or extended through a formal process.
Meanwhile, the government has defended the introduction of the levy, describing it as a necessary step to mobilise an estimated $4.9 billion required to clear legacy debts in the energy sector and sustain power generation in the medium term.
Energy sector debts remain a major fiscal challenge for the government, with persistent arrears to Independent Power Producers (IPPs) threatening power supply stability and undermining the long-term financial viability of the sector.
Finance Minister Dr Cassiel Ato Forson is expected to provide more clarity on the impact of the levy when he presents the Mid-Year Budget Review to Parliament on Thursday, July 24.
