There is waste in the energy sector of Ghana’s economy, which is costing the government a huge amount of money, Executive Director of the Chamber of Petroleum Consumers Ghana (COPEC), Duncan Amoah, has said.
Instead of imposing taxes to rake in revenue from the energy sector, he said, the government must resolve the waste and block revenue leakages.
Duncan Amoah was reacting to the new taxes on fuel while speaking on TV3’s News Central last week..
He said “It is rather the same old playbook that is being revisited at this point and I say this advisedly, we have introduced Energy Sector Levy Act (ESLA) with the expectation of using that to mitigate energy sector debts or legacy debts, 10 years after we have not been able to achieve that aim.
“You would wonder what would inform us, at this point, to still come back to the same playbooke. This time around, we are passing one Ghana Cedi on to the consumer. That for us, is overkill; it doesn’t solve the problem. We would have gone for a thorough audit of the Ministry, looking for ways to prevent leakage or waste in the system.”
This was after Parliament, under a certificate of urgency, approved the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on petroleum products on Tuesday, June 3.
The passage of this bill is expected to generate an additional GH¢5.7 billion in revenue annually to address the energy sector’s financial woes.
The Finance Minister, Dr. Cassiel Ato Forson stated that the energy sector’s total indebtedness stands at US$3.1 billion as of March 2025.
He further explained that a minimum of US$3.7 billion is required to fully clear this debt, with an additional US$1.2 billion needed to procure essential fuel for thermal power generation throughout 2025.
The Minister assured Parliament that the impact of the new levy on ex-pump prices would be “absorbed by the gains made from the strong performance of the Ghana Cedi”, meaning consumers would not experience an immediate price hike.
But the government has come under severe criticism for introducing this levy.
For instance, Former Finance Minister Dr Mohammed Amin Adam said in Parliament that “Not long ago, they were here celebrating abolishing taxes, but I am sorry to say that all the taxes they abolished, put together, did not bring us 5 billion Cedis.
“This government is seeking to raise 5.7 billion Ghana Cedis from the increase in the levy for petroleum products.”
The Karaga lawmaker added “Mr Speaker, I said in this house during the debate on the budget that this government, in abolishing the taxes, was giving something in your hand with the left hand and they were going to take it back from your hand with their right hand and not only taking from your hand but take what was in your pocket in addition. This is exactly what they are doing with the petrol taxes that they are increasing.”
The Minority Leader, Alexander Afenyo-Markin, has criticised the Mahama administration for the introduction of the levy on fuel.
He reminded the government that they promised not to introduce new taxes in the 2025 budget statement therefore, Ghanaians are not expecting new taxes.
“You presented your budget saying you are not going to introduce new taxes and levies, then you turn and say you are repealing e-levy, but now you are bringing back e-levy. You repeal e-levy and reinstate e-levy,” he said on the floor of Parliament on Tuesday, June 3.
