Ghana Introduces New Tax On Fuel

The Government of Ghana has introduced a new levy, requiring consumers to pay Gh¢1 per liter on both petrol and diesel purchases at the pump.

The Energy Sector Levy (Amendment) Bill, 2025, passed by Parliament under a certificate of urgency, aims to raise revenue to settle over $3 billion in debt in the country’s power sector.

Finance Minister Dr. Cassiel Ato Forson presented the bill to Parliament, citing the sector’s total debt of $3.1 billion as of March 2025. An estimated $3.7 billion is required to clear arrears, and an additional $1.2 billion is needed for fuel procurement throughout the year.

Dr. Forson assured lawmakers that the levy wouldn’t lead to an immediate fuel price increase, thanks to the Ghana Cedi’s recent strong performance. However, the Minority Caucus strongly opposed the measure, condemning it as an added burden on struggling Ghanaians.

During the approval process, the Minority staged a walkout, arguing that the Majority lacked the necessary quorum. Majority Leader Mahama Ayariga appealed for national support, describing the levy as a “collective sacrifice” to end electricity supply challenges.

The government projects the levy will generate approximately Gh¢5.7 billion in additional annual revenue for debt servicing and fuel procurement.

While the government insists the fiscal measure is necessary for sector stability, the Minority’s walkout highlights deep political divisions.

The bill now awaits Presidential assent before implementation.

Source:https://energynewsafrica.com