New Levy Targets Stable Electricity Supply in Ghana
Parliament passed a new GH¢1 levy on every liter of fuel on June 3, 2025, to tackle the country’s energy sector crisis. The Energy Sector Levy (Amendment) Bill, introduced by Finance Minister Dr. Cassiel Ato Forson, aims to raise funds to clear a $3.1 billion debt and secure $1.2 billion for fuel to keep power plants running in 2025. The move is meant to end frequent power cuts, known as “dumsor.”
Majority Leader Mahama Ayariga supported the levy, calling it a small sacrifice for reliable electricity. He said the GH¢1 per liter charge will generate about GH¢5.7 billion yearly, covering 60% of the fuel costs needed for power generation. Ayariga stressed that current electricity tariffs don’t cover fuel expenses, making the levy necessary to keep the lights on.
Deputy Finance Minister Wonder Madilo assured Ghanaians that the levy won’t raise fuel prices right away. The strong Ghanaian cedi, which has gained value recently, will absorb the extra cost, keeping pump prices stable at around GH¢13 per liter. Madilo emphasized that the funds will go directly to paying off energy debts and improving the power supply.
Energy Minister John Jinapor defended the levy as a better option than pulling GH¢10 billion from the national budget, which could hurt funds for schools and other services. He noted that the government had delayed the levy earlier due to high fuel prices but introduced it now as prices dropped to GH¢13 per liter. The goal is to fix the energy sector’s long-term financial problems.
The bill faced pushback, with the Minority Caucus walking out during the vote, calling the levy a burden on citizens. Despite this, the Majority passed the bill, and the government is now focused on using the funds to ensure steady electricity and avoid future power crises.