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Finance Minister Dr. Cassiel Ato Forson has assured Ghanaians that the newly approved GHS1 levy on petroleum products will not lead to an increase in fuel prices, due to the strong performance of the Ghanaian cedi.
Speaking during parliamentary debate on the Energy Sector Levy (Amendment) Bill, 2025, Dr. Forson emphasized that while the levy is essential to address Ghana’s ballooning energy sector debt, currently estimated at $3.1 billion — consumers will not bear the brunt of the cost.
According to Dr. Forson, simulations conducted by the Ministry of Finance indicate that fuel prices at the pumps will remain stable as the cedi continues to appreciate.
He further explained that the revenue from the levy will be dedicated to the procurement of fuel for power generation, which is critical for maintaining stable electricity across the country.
“To help raise additional revenue to fund the needs in the power sector, government is proposing an increase in price of petrol diesel and related product. The impact will be absorbed by the gains made from the strong performance of the Ghana cedis. The speaker, I repeat, the impact will be absorbed by the gains made from the strong performance of the Ghana cedis. And this will mean that consumers will not have to pay extra for the price of petrol and diesel beginning today.”
“Our simulations suggest that there will be no increase in the S-form price of petrol and diesel in the next window beginning today, if the levy is imposed. This is because of a strong Ghana city. The levy will serve as a dedicated source of funding to the power sector, and the proceeds will be earmarked for the procurement of essential fuel for power generation. The speaker, this will ensure that Ghana enjoys stable electricity.”
Meanwhile, the Minority in Parliament has warned of long-term economic consequences. Minority Leader Alexander Afenyo-Markin accused the government of going back on its promise not to introduce new taxes, as stated in the 2025 budget.
Despite these concerns, the bill was passed amid a walkout by the Minority. Energy analysts and consumer advocacy groups are sceptical about the government’s assurances.
They warn that any future depreciation of the cedi could erase the cushioning effect, leading to a direct increase in fuel prices.
They believe this, in turn, would raise transportation costs, increase food prices, and deepen the cost-of-living crisis for many Ghanaians.
However the Finance Minister has assured that the impact will be consumed by the cedi appreciation.
