Government to increase tax on fuel, Ato Forson submits request to Parliament

Ghana Government to Increase Fuel Tax

Finance Minister Dr. Cassiel Ato Forson has proposed a new bill. This Energy Sector Levy Amendment Bill aims to raise taxes on petroleum products.

Forson stated that the new taxes are needed. Ghana has an alarming energy debt of US$3.1 billion as of March 2025.

In Parliament on June 3, he explained the plan. The government wants to increase the ex-pump price of petrol and diesel. This is necessary to fund needs in the power sector.

Forson assured consumers they might not feel immediate effects at the pumps. He noted that the strengthening cedi could offset price increases.

"Our simulations suggest no rise in prices if the levy is imposed," he said. The debt includes significant arrears owed to Independent Power Producers and fuel suppliers.

The Minister believes this levy will help ensure reliable power supply. It also aims for long-term financial sustainability in Ghana's energy sector.