A new GHC1 per litre petroleum levy takes effect July 16, 2025, following parliamentary approval of amendments to the Energy Sector Levies Act.
The Ghana Revenue Authority confirmed the levy aims to address the energy sector’s GHC3 billion debt burden.
Opposition Leader Alexander Afenyo-Markin criticized the measure as a “backdoor E-Levy,” referencing the government’s earlier repeal of the electronic transactions tax. “You presented a budget pledging no new taxes, then reinstate levies through amendments,” the New Patriotic Party MP stated during June parliamentary proceedings.
Energy analyst Dr. Charles Wereko-Brobbey countered Afenyo-Markin’s position, demanding accountability for the latter’s tenure as Electricity Company of Ghana Board Chairman under the previous administration. “The Minority created current energy crises through ECG’s debt accumulation,” Wereko-Brobbey asserted in a 3news interview. “Before criticizing, Afenyo-Markin must explain ECG’s financial losses during his leadership.”
The exchange highlights ongoing tensions between the ruling National Democratic Congress and opposition NPP over energy sector governance. Government officials maintain the levy is essential for stabilizing power utilities, while critics argue it exacerbates living costs amid 13.7% inflation.
Energy Ministry records confirm sector debts reached GHC3 billion in Q1 2025, attributed partly to legacy arrears from power purchase agreements. The levy’s implementation coincides with World Bank recommendations for energy sector fiscal reforms.
