The newly introduced Energy Sector Levy has sparked backlash from the Minority in Parliament, who argue that it will worsen Ghana’s cost of living crisis.
The government has announced a GHS1 levy per litre of fuel, set to take effect on June 16, 2025.
Speaking at a press conference on June 9, Kojo Oppong Nkrumah, Ranking Member on the Economy and Planning Committee, criticized the levy, which the Minority has dubbed the “Dumsor levy,” describing it as one of the highest taxes ever imposed in Ghana.
“At 8% per litre, the D-Levy is quietly draining more from Ghanaians than the E-Levy ever managed to and that’s saying something,” Oppong Nkrumah stated.
He argued that instead of imposing more taxes, the government should prioritize solutions such as renegotiating power purchase agreements, shifting fuel purchases and excess capacity charges off ECG’s books, and enhancing operational efficiency at ECG and GRIDCo. “Instead of taxing Ghanaians more, why not fix the inefficiencies and renegotiate the bad deals? That’s where the real savings are,” he said.
Meanwhile, George Aboagye, Ranking Member on the Energy Committee, labeled the move as “hypocrisy” and a complete reversal of the government’s previous stance.
“The NDC in less than six months has imposed a levy they swore they never would. It’s a 360-degree turnaround,” Aboagye said, calling it a betrayal of public trust. He further criticized the government for allegedly passing the bill without proper consultation.
“There was no transparency, no stakeholder engagement. It was sneaked through clandestinely. It defeats everything they say they stand for,” he added.
Aboagye also pointed out inconsistencies in statements from President John Mahama and the Energy Minister regarding the levy’s purpose, raising concerns about the government’s real intentions.
