Editorial: GH¢1-per-litre levy continues to generate debate

The new Energy Sector Levy, which imposes an additional GH¢1 charge on each litre of petrol and diesel purchased at the pump, continues to generate debate.

Aimed at addressing longstanding challenges within the energy sector, critics continue to describe it as a regressive tax that places an undue burden on consumers.

Mr. Ernesto Yeboah, Leader of the Economic Fighters League, believes it as an ill-timed burden on citizens already struggling with economic challenges.

Passed late on Tuesday, June 3 this year (2025), the bill introduces a GH¢1 levy on petroleum products. The levy seeks to generate additional revenue to help address the country’s significant energy sector debt and to ensure a stable power supply.

The bill, tabled by Finance Minister Dr Cassiel Ato Forson under a certificate of urgency, is expected to generate crucial revenue to address an energy sector debt of US$3.1 billion.

Government estimates that US$3.7 billion will be required to fully clear the arrears, in addition to US$1.2 billion needed to purchase fuel for thermal power generation throughout the year.

Mr Yeboah questions government’s decision to scrap the popular Electronic Transaction Levy (E-Levy) only to replace it with another levy that appears to demand even more from citizens.

Yeboah thinks President Mahama should explore alternative measures to ease the country’s financial burden without imposing new taxes.

Meanwhile, Francis Timore Boi, a tax analyst has urged the Ghana Revenue Authority (GRA) to provide industry stakeholders with adequate timelines to ensure effective compliance with tax policies.

It comes in the wake of GRA’s decision to delay the implementation of the GHC1 Energy Sector Shortfall and Debt Repayment Levy—initially set for June 9—following strong pushback from industry players. The new implementation date has been moved to June 16.

He also called for dialogue between the GRA and Oil Marketing Companies (OMCs) to agree on a feasible timeline. The Ghana Revenue Authority (GRA) has revised the implementation of the Energy Sector Shortfall and Debt Repayment Levy following stiff resistance from oil marketing companies.

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