Ghana’s Parliament on Tuesday, June 3, approved a controversial new fuel levy aimed at easing mounting debt in the country’s energy sector, sparking sharp criticism from opposition lawmakers who staged a walkout in protest.

Passed under a certificate of urgency, the Energy Sector Levy (Amendment) Bill, 2025, imposes a GH¢1 (approximately $0.08) tax per litre on petroleum products. The measure is expected to generate roughly GH¢5.7 billion ($400 million) in annual revenue, according to government estimates.

Finance Minister Cassiel Ato Forson defended the move, citing the energy sector’s ballooning debt load. As of March, liabilities stood at $3.1 billion, he said, adding that at least $3.7 billion is needed to fully settle arrears, while an additional $1.2 billion will be required to fund fuel purchases for thermal power generation through the end of the year.

Dr. Forson assured lawmakers that the impact of the levy on consumer fuel prices would be minimal in the near term. “Thanks to the strong performance of the Ghana Cedi, we do not expect a direct increase in ex-pump prices,” he said.

The legislative approval, however, came amid a boycott by the Minority in Parliament, which slammed the tax as a regressive burden on ordinary Ghanaians. “This is not the time to impose more levies on suffering citizens,” a Minority spokesperson said before members exited the chamber in protest.

The levy is the latest in a series of government efforts to stabilize Ghana’s energy sector, which has been hampered by legacy debts, power outages, and stalled infrastructure projects. Analysts say failure to address these issues could threaten long-term energy security and investor confidence in the sector.

Source:TheDotNews