The Government of Ghana has introduced the Energy Sector Levy (Amendment) Bill in Parliament, proposing a GH¢1 tax per litre on all petroleum products.
The bill, submitted under a certificate of urgency, is part of an emergency plan to address the country’s growing energy sector debt, which now stands at US$3.1 billion.
If passed, the new levy will affect petrol, diesel, and related fuels, as the government seeks to stabilize the sector and clear significant arrears owed to Independent Power Producers (IPPs), State-Owned Enterprises (SOEs), and key fuel suppliers.
Presenting the bill, Finance Minister Dr. Cassiel Ato Forson described the financial situation as critical.
“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 told Parliament.
However, the Minister was quick to assure Ghanaians that the new levy would not lead to an immediate rise in fuel prices at the pump, thanks to the current strength of the Ghanaian currency.
“Mr. Speaker, I repeat,” he emphasized, “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 petrol and diesel beginning today.”
He further clarified: “Our simulations suggest that there will be no increase in the ex-pump price of petrol and diesel in the next window beginning today if the levy is imposed. This is because of a strong Ghana Cedi.”
Despite the assurance, the proposed tax has already triggered debate, with some stakeholders questioning the long-term impact on fuel prices and the cost of living.
Tags: Ghana News - Ghana
