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Energy Sector Debt: Parliament passes GHS1 petroleum levy

by theoverseer
June 4, 2025
in Business, Energy, National
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Energy Sector Debt: Parliament passes GHS1 petroleum levy

Ghana's Parliament

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Parliament has approved the Energy Sector Levy (Amendment) Bill, 2025, which introduces a GHS1 increase on all petroleum products in a bid to rescue the energy sector.

The Finance Minister Dr. Cassiel Ato Forson, justified the levy as a critical measure to generate revenue to settle ballooning energy sector debts, currently estimated at $3.1 billion.

Presenting the bill on the floor of Parliament on Tuesday, Dr. Forson said the funds will be used to support power generation and prevent a looming sectoral collapse.

But the new tax measure sparked heated debate in the chamber, with the Minority fiercely resisting its passage.

Minority Leader Alexander Afenyo-Markin accused the government of going back on its word, citing earlier commitments in the 2025 budget that ruled out any new taxes.

In protest, the Minority staged a walkout, claiming that the Majority side lacked the required numbers to legitimately pass the bill.

They described the decision as rushed and ill-timed, especially in the face of economic hardship.

Majority Leader Mahama Ayariga, however, dismissed the claims, defending the levy as a pragmatic solution to the country’s energy challenges.

He emphasized that the measure is part of broader efforts to ensure reliable power supply and curb recurring load-shedding issues, popularly known as “dumsor.”

The bill was passed despite the controversy and is expected to take effect later this year as part of government efforts to restore financial stability to the power sector.

Energy Sector Levies (Amendment) Bill, 2025

Tags: Ato ForsonGhana NewsGHS1 petroleum levyParliament
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