Parliament passes GH¢1 fuel levy to solve dumsor

Parliament has passed the Energy Sector Levy Amendment Bill 2025. This bill imposes a GH¢1 increase on every litre of fuel.

The new levy aims to generate GH¢5.7 billion in revenue. This money will help reduce energy sector debts. It also aims to address the erratic power supply known as dumsor.

Ato Forson spoke in Parliament about the energy sector's financial needs. He stated that at least $3.7 billion is required to clear current debts. In 2025, an additional $1.2 billion will be needed for essential fuel procurement.

Forson warned that the power sector risks imminent collapse without resolving these debts. He mentioned that the government plans to increase diesel and petrol prices. However, he assured that consumers would not pay extra due to gains from the Ghana cedi.

The Minority Caucus opposed the levy and staged a walkout during approval. Benjamin Nsiah, Executive Director of the Centre for Environment and Sustainable Development, criticized the new levy. He called it regressive and detrimental to consumers already facing strain.

Nsiah told CITI News that this approach is unfair and ineffective. Previous levies have not solved underlying issues in the energy sector, he noted. He emphasized that it's about managing existing funds rather than collecting more revenue.

He concluded by stating that management, not revenue, is the real problem in this situation.