By: Nadia Ntiamoah
Ghanaians may soon face an additional GHS1 tax on every litre of fuel purchased, as the government moves to introduce a new Energy Sector Levy under a proposed amendment bill.
The move, spearheaded by Finance Minister Cassiel Ato Forson is being pushed through Parliament under a certificate of urgency—a decision that has drawn sharp criticism from both opposition lawmakers and civil society groups.
On Tuesday, June 3, 2025, the Energy Sector Levies (Amendment) Bill, 2025 was laid before Parliament and immediately referred to the Finance Committee for consideration.
The Finance Minister is requesting expedited approval of the bill, arguing that the GHS1 per litre levy is crucial for addressing pressing fiscal needs within the energy sector.
However, the introduction of the bill triggered tension on the floor of Parliament.
Minority Leader, Alexander Afenyo-Markin questioned the rationale behind the bill’s urgency, pointing out a contradiction in government policy.
“How can the Finance Minister, in one breath, repeal the E-Levy and in another, reintroduce a tax with similar characteristics under the guise of energy sector support?” he asked.
Afenyo-Markin noted that the justification for urgency had never been mentioned during recent closed-door meetings (conclaves) between Majority and Minority leadership.
The sudden presentation of the bill has left many lawmakers and stakeholders scrambling to understand its implications.
The proposed GHS1 fuel levy comes at a time when Ghanaians are already burdened by rising inflation, a weakening cedi, and high unemployment.
Analysts warn that the levy could further drive up transport costs, food prices, and inflationary pressures across the economy.
The government’s argument is that the levy is needed to address legacy debts in the energy sector, recapitalize key state institutions, and ensure the sustainability of power supply.
But critics argue that these justifications ring hollow given the long-standing issues of inefficiency, mismanagement, and corruption that have plagued institutions like the Tema Oil Refinery (TOR) and the Electricity Company of Ghana (ECG).
