President Mahama assents to Energy Sector levy

President John Dramani Mahama has officially signed into law the Energy Sector Levy (Amendment) Bill, 2025, a measure the government describes as crucial to rescuing Ghana’s ailing energy sector despite widespread public backlash.

The President assented to the bill on Thursday, June 5, 2025, following its passage by Parliament on Tuesday, June 3.

The newly enacted law introduces a GH¢1 levy on every litre of petroleum product sold in the country. Government projections suggest this could generate approximately GH¢5.7 billion annually to support the struggling energy sector.

According to the government, the primary objective of the levy is to address the sector’s legacy debt, which currently stands at an estimated \$3.1 billion, and to provide stable electricity supply to prevent recurrent power outages, widely referred to as “dumsor.”

While the move has faced significant criticism from transport unions, the general public, and the Minority in Parliament, President Mahama insists it is a difficult but necessary step to avert an imminent energy crisis.

Finance Minister Dr. Cassiel Ato Forson, who presented the bill, defended the new tax, describing it as a critical intervention. He assured Ghanaians that the levy would not lead to higher fuel prices due to the recent appreciation of the cedi.

Revenue from the levy is earmarked for the purchase of fuel for electricity generation, with the ultimate goal of reducing load shedding and enhancing grid reliability.

The President had said earlier that this is a tough call, but it is in the national interest stressing that avoiding difficult decisions today could plunge the nation into deeper power challenges tomorrow.