President John Dramani Mahama has signed into law a bill that introduces a GHS1 increase in the levy on petroleum products.

The Energy Sector Levy (Amendment) Bill, 2025, which was passed by Parliament earlier this week, is expected to raise an estimated GHS5.7 billion in additional revenue. The government says the funds will be used to reduce debts in the energy sector and help stabilise electricity supply across the country.

Speaking at a brief ceremony in Accra on Thursday, President Mahama described the decision as “difficult but necessary,” amid widespread concerns over the cost of living.

“This revenue will be strictly ring-fenced to pay down legacy debts, finance ongoing fuel purchases, and avert the risk of recurring power shortages,” he said.

The president had earlier defended the measure during a meeting with the National Economic Dialogue Planning Committee, saying it was a “justifiable step” to secure the country’s energy future.

Ghana has faced repeated power crises in recent years, often attributed to financial shortfalls and fuel supply challenges within the energy sector.

Authorities say the new levy will provide critical funding to prevent further disruptions and maintain a stable electricity supply.

Source:TheDotNews