Parliament passes new energy sector levy under certificate of urgency

Parliament on Tuesday night passed the Energy Sector Levies (Amendment) Bill, 2025, (Act 1135) into law under certificate of urgency.

The bill proposed an upward adjustment in the Energy Sector Shortfall and Debt Repayment Levy to raise additional revenue to support the payment of energy sector arrears.

The proceeds from the levy is expected to reduce the energy sector legacy debt, and ensure stable power supply across the country.

The bill, which was considered under a certificate of urgency, was passed into law at exactly 23:10 hours on Tuesday, June 03,2025, after being read the third time.

However, the Minority Caucus staged a walkout after the Speaker objected to their call for a head count, and subsequently performed a symbolic hand-washing outside the Chamber of the House.

It is expected that government would rake-in GH¢5.7 billion from the energy sector levy.

Earlier, Dr Cassiel Ato Forson, the Minister of Finance, tabled the bill before the House to amend the Energy Sector Levies Act, 2025, to enable government to impose energy levy on petroleum products.

It is expected that one Ghana Cedi would be charged on every litre of petroleum products.

The Minister said the levy would serve as a dedicated source of funding to the power sector, and the revenue would be earmarked for the procurement of essential fuel for power generation and ultimately end the long-cycle of power outages, otherwise known as “dumsor”.

The decision, Dr Forson explained, was due to the $3.7 billion energy sector debts as of March, this year.

Dr Forson assured the House that the impact of the new levy on petroleum prices would be neutralised by the strong performance of the Ghana cedi, ensuring that petroleum consumers would not pay extra for petrol or diesel.

Meanwhile, the Minority Caucus vehemently opposed to the bill, describing it as another form of “e-levy” which then opposition National Democratic Congress (NDC) Minority Caucus kicked against it under the New Patriotic Party Administration.

The Minority Leader, Alexander Afenyo-Markin, said the levy would add GH¢4.50 pesewas on every gallon of petroleum products.

The Minority Leader described the action by the Majority Caucus as shameful for passing the bill into law at the “dead of the night”.

Mr Collins Adomako Mensah, the NPP Member of Parliament for Afigya Kwabre North, alleged the levy would lead to increase petrol prices by 105 per cent, diesel by 110 per cent and marine fuel by 400 per cent.

The legislator expressed surprise that the NDC Majority Caucus, which opposed new taxes when it was in opposition, was now applauding Dr Cassiel Ato Forson, the Minister of Finance, for introducing a new tax to overburden Ghanaians.

….Is that what you promised the people of Ghana?…Is this the reset you were talking about?…This is e-levy promax.We, the Minority will stand with Ghanaians to reject the bill,” Mr Adomako Mensah emphasised.

Source: GNA

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