A sharp political rift has emerged in Ghana’s Parliament following the introduction of the Energy Sector Levies (Amendment) Bill, 2025, as the government and opposition trade blame over how best to resolve the energy sector’s ballooning debt.
The bill, which seeks to increase the levy on petroleum products from 20 pesewas to GH¢1 per liter, has ignited fierce debate. While the government insists the measure is essential to protect the power sector from collapse, the opposition New Patriotic Party (NPP) claims it is a betrayal of public trust and a move that will worsen the economic burden on Ghanaians.
Mr Emmanuel Kwasi Bedzrah, Chairperson of Parliament’s Energy Committee, defended the bill during a press engagement in Accra, stating that the energy sector is drowning under a $3.1 billion debt, including $1.7 billion owed to Independent Power Producers (IPPs). According to him, the government faces a monthly deficit of GH¢2 billion in energy financing.
“The proposed GH¢1 levy will raise GH¢5.7 billion annually to ensure power stability. It won’t increase pump prices, which have already dropped from GH¢16 to GH¢12 per litre since January,” Mr. Bedzrah clarified.
He dismissed claims by the Minority that the levy was introduced without due consultation.
“All Minority MPs were present during committee deliberations and a majority decision was taken. It is disingenuous to now suggest they were blindsided,” he said.
He cautioned against politicising energy policy, stating:
“Let us not play politics with the power that lights our homes, powers our hospitals, and drives our industries.”
However, the NPP Minority Caucus remains unmoved. At a separate press briefing, Mr George Kwame Aboagye, the Ranking Member on the Energy Committee, described the new levy as “hypocrisy of the highest order,” pointing to past promises by Finance Minister Dr. Cassiel Ato Forson to avoid taxing fuel to pay energy sector debt.
“The NDC government is doing the very thing it criticised—imposing new taxes under the guise of fiscal responsibility,” he charged.
The Minority drew parallels between the controversial E-Levy and the new “Dumsor Levy”, highlighting differences they claim show a lack of transparency in the new tax’s rollout.
Mr Kojo Oppong Nkrumah, Ranking Member on the Economy and Development Committee, proposed alternative solutions, including:
- Renegotiating Power Purchase Agreements (PPAs)
- Improving operational efficiency at GRIDCo and ECG
- Expanding renewable energy investment to reduce fuel reliance
He pledged that the Minority would continue to engage with civil society, media, and industry stakeholders, and stand with driver unions and oil marketing companies opposed to the levy.
“We will advocate for the withdrawal of this levy and push for more pragmatic and equitable solutions,” he said.
The Energy Sector Levy Amendment was introduced under a certificate of urgency on June 3 by the Finance Minister. He argued that it is a necessary step to avoid power outages, ensure fuel procurement for thermal plants, and clear arrears owed to producers.
Dr. Forson stated that the recent cedi appreciation would cushion the impact, preventing major price shocks for consumers.
But critics, including Minority Leader Alexander Afenyo-Markin, remain skeptical.
“This government says it is removing taxes on one hand and imposes new ones on the other. Ghanaians are watching,” he said.
As Parliament debates the bill, the broader question remains: how can Ghana maintain a stable and reliable energy supply without further straining households already grappling with a high cost of living?
