Finance Minister Tables GH¢1 Petroleum Tax to Clear Energy Debt
Accra, Ghana - June 4, 2025 - The Finance Minister, Dr. Cassiel Ato Forson, has tabled the Energy Sector Levy (Amendment) Bill, 2025 before Parliament, seeking to increase the levy on petroleum products by GH¢1.
#The proposed amendment aims to raise additional revenue to mitigate the energy sector's crippling debt burden and improve power supply.
According to Dr. Forson, the energy sector's indebtedness stands at a staggering $3.7 billion, necessitating immediate attention to prevent collapse.
Furthermore, the government will require an additional $1.2 billion in 2025 to procure fuel for thermal power generation, underscoring the sector's precarious financial situation.
The Minister, in a brief statement on the floor of Parliament on June 3, emphasized that the proposed levy increase will not result in higher prices for consumers, attributing this to the strength of the local currency.
“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,'' he said.
“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 proposed amendment seeks to address the energy sector's financial woes, which have been a recurring challenge for the country. By increasing the levy, the government hopes to generate additional revenue to reduce the sector's debt burden and improve power supply.
Source: Lead News Online
