Finance Minister Dr Cassiel Ato Forson has ignited debate in Parliament with the introduction of the Energy Sector Levy Amendment Bill, which seeks to impose new taxes on petroleum products.
Presented under a certificate of urgency, the bill if approved will introduce additional levies on all petroleum products, a move the Minister argues is essential to addressing Ghana’s ballooning energy sector debt, which reached US$3.1 billion by the end of March 2025.
Speaking before Parliament on Tuesday, June 3, Dr Ato Forson reassured lawmakers that, despite the tax hike, consumers would not immediately feel the impact at the fuel pumps.
He attributed this cushioning effect to the Ghana Cedi’s strong performance.
The Minister highlighted the dire state of the energy sector, revealing that the US$3.1 billion debt consists of substantial arrears owed to Independent Power Producers (IPPs), State-Owned Enterprises (SOEs), and key fuel suppliers.
He pointed to the non-payment of bills to major power providers such as ENI and Karpowership as a significant factor in the financial crisis.
This situation, he explained, led to the full depletion of a US$512 million World Bank IDA guarantee and a US$120 million GNPC guarantee in 2024, leaving the government scrambling for an additional US$632 million to restore these critical financial safeguards.
“To help raise additional revenue to fund the needs in the power sector, the government is proposing an increase in the ex-pump price of petrol, diesel and related products,” Dr Forson stated before Parliament.
His proposal has sparked widespread discussions among policymakers and industry stakeholders, with many awaiting further deliberations on the bill’s implications for businesses and the broader economy.
