Benjamin Nsiah, the Executive Director of the Centre for Environment and Sustainable Energy has described the government’s newly approved GHȼ1 fuel levy as regressive, uncreative and detrimental.
According to Benjamin Nsiah, Ghanaians have seen this playbook before as the approach is not only tired but unfair.
Speaking to CITI News Benjamin Nsiah, stated, “This approach is not only tired but unfair. We’ve seen this playbook before. The Energy Sector Levies Act (ESLA), the Energy Sector Recovery Levy and none of them has provided a lasting solution to the underlying issues. It’s not about collecting more. It’s about managing what’s already collected.”
“For the Minister to say this won’t burden consumers is simply not accurate. The consumer has carried this burden for years, and without reform, this trend will continue,” he cautioned.
“The problem is not revenue; it is management,” he concluded.
His comment came on the back of Parliament passing the Energy Sector Levy Amendment Bill 2025, imposing GH¢1 on every litre of fuel.
The Energy Sector Levy Amendment Bill 2025 introduces a GH¢1 increase in the levy on petroleum products.
According to reports the measure will generate some GH¢5.7 billion in revenue to help reduce energy sector debts and help solve the erratic power supply commonly known as dumsor.
In a brief statement on the floor of Parliament, Ato Forson detailed that at least $3.7 billion is needed to clear the current energy sector debt.
Speaking on the floor of parliament, Ato Forson stated, “A minimum of $3.7 billion is needed to clean up the overall energy sector’s indebtedness for us to have a clean slate. In the year 2025, the government will require an additional $1.2 billion to procure essential fuel for thermal power generation alone. The power sector risks imminent collapse if these unsustainable debts are not resolved.
“The government is proposing an increase in the X pump price of diesel, petrol, and related products. The impact will be absorbed by the gains made from the strong performance of the Ghana cedi. And this will mean that consumers will not have to pay extra for the price of diesel and petrol, beginning today, June 3,” he added.
The Minority Caucus however described the levy as inappropriate and staged a walkout during the approval.
