Govt seeks GH¢1 fuel levy hike to save energy sector

Finance Minister Dr. Cassiel Ato Forson has presented the Energy Sector Levy (Amendment) Bill, 2025 to Parliament.

This amendment aims to raise the levy on petroleum products by GH¢1. The goal is to generate more revenue to reduce energy sector debts and improve power supply.

Dr. Ato Forson stated that $3.7 billion is needed to clear current energy sector debt. He also mentioned that an additional $1.2 billion will be required for fuel procurement in 2025.

On June 3, Dr. Forson emphasized that this adjustment won't lead to higher consumer prices. He explained that the strong performance of the local currency will absorb the impact.

He said, "A minimum of $3.7 billion is needed to clean up the overall energy sector's indebtedness." He warned that without resolving these debts, the power sector risks imminent collapse.

The government proposes an increase in pump prices for diesel, petrol, and related products. However, consumers will not pay extra starting June 3 due to gains from the strong cedi performance.

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