Ghana Targets Energy Debt Relief With Stealth Petroleum Levy Hike

Ato Forson

Ghana’s government will generate approximately GH¢400 million monthly through a revised Energy Sector Levy without increasing consumer fuel prices, according to policy sources.

The adjustment raises the per-litre levy on petrol and diesel from 20 pesewas to GH¢1.00, effective 16 June 2025 during the next pricing window.

Favorable global oil prices and cedi appreciation enable the revenue measure without pump price impacts, allowing its expedited parliamentary approval under certificate of urgency. Industry experts confirm the timing leverages an anticipated fuel price decline, absorbing the levy increase within existing consumer costs.

Monthly consumption of 470 million litres translates to GH¢376 million in new revenue from the 80-pesewa incremental charge, totaling GH¢4.5 billion annually. Analysts acknowledge the 500% levy hike is substantial but necessary to address Ghana’s $3.1 billion energy sector debt from under-recoveries and operational inefficiencies. “This presents a practical revenue solution,” one expert noted, referencing ongoing government negotiations with Independent Power Producers.

Stakeholders demand stringent transparency measures, urging monthly public reports detailing levy collections, debt settlement allocations, and remaining balances. “Clear reporting builds public confidence for this initiative,” a sector representative stated, challenging Finance Minister Cassiel Ato Forson to personally communicate progress.

The strategy mirrors historical approaches by both NDC and NPP administrations, using favorable market conditions to implement energy sector reforms without consumer burden while confronting structural financial challenges.

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