Parliament on Tuesday night approved the Energy Sector Levy (Amendment) Bill, 2025, which imposes a GH¢1 levy on petroleum products. The levy, according to the administration, is imperative to tackle the nation’s spiralling energy sector debt.
The decision passed under a certificate of urgency sparked fierce resistance from the Minority caucus in Parliament who staged a dramatic walkout in protest, branding the energy levy an unbearable burden on Ghanaians.
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Finance Minister Dr. Cassiel Ato Forson, who tabled the bill, revealed that the energy sector’s debt has ballooned to US$3.1 billion as of March 2025. He warned that US$3.7 billion is needed to clear the debt, with an additional US$1.2 billion required for fuel to power thermal plants throughout 2025. Dr. Forson insisted that the strong performance of the Ghana Cedi would cushion consumers from immediate price hikes at the pump.
However, the Minority Caucus fiercely opposed the bill, arguing it places an unfair strain on citizens already grappling with economic challenges.
Minority leader Alexander Afenyo-Markin described it as another E-levy and questioned how the government could repeal the Electronic Transactions Levy (E-levy) of GH¢1 on every Gh¢100 transaction and turned around to introduce the Energy Levy (another E-levy) (GH¢1) on every GH¢10 litre of fuel.
The Caucus walked out in protest against what they described as a flawed decision, claiming the Majority lacked the numbers for a legitimate vote.
Majority Leader Mahama Ayariga, however, made an impassioned plea for the levy, calling it a ‘collective sacrifice’ to end the crippling power outages known as ‘dumsor.’ He distanced the new levy from the recently repealed E-levy, urging Ghanaians to contribute ‘just one cedi’ per litre of fuel to secure a stable energy future.
The energy levy is projected to raise GH¢5.7 billion annually to address the energy sector’s financial crisis with the government claiming that the Cedi’s strength against the dollar will shield consumers.
By Osumanu Al-Hassan/thenewsbulletin24.com