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Energy Levy generated GHS8.81 billion in 2025 as gov’t spent GHS22.67 billion to support power sector

by theoverseeronline.com
June 24, 2026
in Business
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Energy Levy generated GHS8.81 billion in 2025 as gov’t spent GHS22.67 billion to support power sector
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The government has disclosed that the Energy Sector Shortfall and Debt Repayment Levy generated GHS8.81 billion in revenue during the 2025 fiscal year, with the proceeds directed into the Energy Sector Support Account to address financial obligations within the energy sector.

The figures were presented to Parliament on Tuesday, June 23, 2026, by the Minister for Finance, Dr Cassiel Ato Forson, as part of the annual report on the management and utilisation of the levy.

The levy, which imposes a charge of GHS1 per litre on selected petroleum products, was introduced to raise funds for fuel procurement for thermal power generation and to facilitate the repayment of accumulated debts within the energy sector.

According to the report, the GHS8.81 billion collected during the year was supplemented by a carried-forward balance of GHS1.26 billion, bringing the total funds available in the Energy Sector Support Account to GHS10.07 billion.

Of this amount, the government utilised GHS9.82 billion to address key sector obligations.

The expenditure included GHS6.32 billion used to finance critical energy sector shortfalls and GHS3.52 billion allocated to the repayment of legacy debts in accordance with the provisions of Act 1135.

Following the disbursements, the Energy Sector Support Account recorded a closing balance of GHS252.23 million as of December 31, 2025.

Despite the significant revenue generated through the levy, the funds were insufficient to meet the energy sector’s total financial requirements for the year.

To bridge the gap, the Controller and Accountant General’s Department transferred an additional GHS12.85 billion from the Treasury Main Account to support energy sector operations and debt obligations.

As a result, total government spending on the energy sector in 2025 reached GHS22.67 billion when expenditures from both the Energy Sector Support Account and the Treasury Main Account are combined.

The management of the energy levy has frequently attracted scrutiny from Civil Society Organisations and stakeholders within the energy sector, many of whom have called for greater transparency and accountability in the use of petroleum-related taxes.

However, the government defended its administration of the funds in the report, stressing that the levy has played a critical role in addressing persistent sector deficits, supporting power generation, and enhancing the reliability of electricity supply across the country.

The Finance Ministry maintained that the continued application of the levy remains an important component of efforts to stabilise the energy sector and manage longstanding financial challenges facing the industry.

Tags: Ato Forson
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