The Minority Caucus in Parliament has launched a blistering attack on the government, labelling the recently introduced GH¢1 Energy Sector Levy on petroleum products as a “draconian, hypocritical, and betrayal of public trust.”
Addressing a press conference in Parliament on Monday, the Ranking Member on the Energy Committee, Hon. George Kwame Aboagye, drew sharp comparisons between the new Energy Sector Levy, which the Minority has christened the (Dumsor Levy or D-Levy), and the controversial Electronic Transfer Levy (E-Levy) introduced by the previous administration.
Hon. Aboagye stressed significant differences, stating that while the E-Levy was openly debated in the budget and subjected to town hall meetings and public consultations, the D-Levy was ‘smuggled in at night,’ describing it as ‘midnight robbery, pure and simple.’
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He argued that the E-Levy imposed a 1% charge per transaction with exemptions for transfers below GH¢100, whereas the D-Levy levies an 8% charge on all fuel purchases, with ‘no exemptions for the poor.’
“This levy has no minimum threshold. Even farmers fueling their tractors will pay. The poor are disproportionately affected,” the Ranking Member lamented.
Hon. Aboagye emphasized that unlike the E-Levy, which was limited to voluntary mobile transactions, the D-Levy impacts all Ghanaians, inevitably leading to increased transport costs and higher prices for everyday goods.
He accused the ruling government of misleading Ghanaians before the 2024 elections by promising no new taxes to address the energy sector debt and then and then undermining their trust. “This government knew the state of the energy sector and still promised not to impose new taxes. Now they’ve turned around and done exactly that. This is a betrayal of the highest order,” Hon. Aboagye stressed.
He recalled a statement by Finance Minister Dr. Cassiel Ato Forson on March 11, 2025, in which the Minister assured Ghanaians there would be no such levy.
“How can a party that claimed moral superiority in opposition now be sneaking tax bills through Parliament at midnight,” Hon. Aboagye questioned.
The Minority also pointed to conflicting explanations from government officials regarding the levy’s purpose, citing a contradiction between President Mahama, who stated the funds would address energy sector debt, and Energy Minister John Jinapor, who claimed it was for purchasing liquid fuels.
The caucus also challenged the feasibility of paying off the entire US$3.1 billion energy sector debt with the projected GH¢9 billion to be raised by the levy by December 2026.
According to Hon. George Aboagye, the levy, which translates to an additional GH¢4.50 per gallon of fuel, will significantly escalate the cost of transportation and basic commodities.
“This 8% levy is one of the highest single tax rates ever imposed. Even if it had a good purpose, its rate is wicked. What work has this government done to justify such a tax?” he questioned.
The Ranking Member called on the government to withdraw the GH¢ Energy Levy and instead pursue alternative, more sustainable solutions to address the energy sector debts. Emphasizing the need to restore public trust, he proposed renegotiating power purchase agreements to eliminate off-book debts, enhancing operational efficiency at GRIDCo and ECG to minimize technical losses, and investing in renewable energy—particularly the 2,000MW of solar power pledged in the NPP’s 2024 manifesto.
Hon. George Aboagye pledged the Minority’s unwavering determination to resist the levy through sustained advocacy and solidarity with civil society organizations and trade unions. “We will stand with driver unions and oil marketers. We will not allow this levy to pass quietly. Ghanaians deserve transparency, honesty, and fairness,” he stressed
By Osumanu A-Hassan/thenewsbulletin24.com