Lack of consultation erodes public goodwill for new Energy Levy – Prof Bokpin

Economist and Finance Professor Godfred Bokpin from the University of Ghana has criticized the government. He is concerned about the lack of stakeholder consultation regarding the GH¢1 per litre surcharge on petroleum products. This surcharge is commonly referred to as the 'Dumsor Levy'.

Bokpin warned that this rushed approach could undermine public trust. It may also weaken support for the policy.

On JoyNews’ Newsfile programme, he stated that the lack of consultation detracts from important discussions. He urged the government to reconsider its approach. He noted that there was no indication of this levy in the 2025 budget presentation.

He emphasized that meaningful dialogue with stakeholders is essential for policies with major financial impacts.

The Energy Sector Levy (Amendment) Bill, 2025, was passed by Parliament urgently. Its goal is to generate revenue to address Ghana’s energy sector debt.

Finance Minister Dr. Cassiel Ato Forson reported that total indebtedness reached US$3.1 billion by March 2025. He mentioned that at least US$3.7 billion is needed to clear this debt. An additional US$1.2 billion is required for fuel procurement for thermal power generation throughout the year.

However, the Minority in Parliament strongly opposes this levy. They label it a “predatory tax” expected to extract GH¢5.7 billion annually from households and businesses.

They have criticized the bill's passage for its lack of transparency. The Minority demands detailed information on how these funds will be managed.