Ghana’s parliament on Friday approved amendments to the Energy Sector Levies Act aimed at boosting revenue collection and tackling abuses in the downstream petroleum sector.
The amendments increase the Energy Sector Shortfall and Debt Repayment Levy on fuel oil to 1.93 cedis per litre from 0.24 cedis, aligning the rate with those applied to diesel and marine gas oil.
They also extend the Road Fund Levy to fuel oil.
The government said the measures were designed to close revenue leakages and prevent abuse of fuel subsidy programmes intended for industrial users.
Authorities say some beneficiaries have misused the subsidies for private gain, undermining the programme’s effectiveness.
Finance Minister Cassiel Ato Forson said industrial users would now pay the applicable levies upfront when importing fuel oil and claim refunds afterward, replacing the current system of granting exemptions before importation.
“Some individuals are taking advantage and smuggling, buying diesel and disguising it as fuel oil and collecting the taxes on it,” Forson told parliament.
He said the government would maintain tax exemptions for legitimate industrial users but shift the system from an ex-ante to an ex-post refund mechanism.
“There will not be a tax increase on petroleum products,” Forson said, adding that fuel oil is used by industry rather than motorists.
He also said the government would amend the Revenue Administration Act to shorten the processing period for fuel oil tax refunds to 14 days from 90 days.
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