Government Postpones Implementation Date of GH¢1 Energy Sector Levy

• The Government of Ghana has postponed the revised energy levy's implementation from June 9 to June 16, 2025
• This follows concerns raised by the Chamber of Oil Marketing Companies over the levy’s timing and impact on consumers
• Parliament recently passed a GH¢1 fuel levy to help reduce energy sector debt and support the procurement of thermal fuel

The Government of Ghana has postponed the implementation date of the revised energy sector levy from June 9 to June 16, 2025.

This follows concerns raised by the Chamber of Oil Marketing Companies (COMAC) about the timing and potential impact of the levy on their business operations and consumers.

COMAC argued it was not adequately consulted before the amendment to the energy sector levy was proposed and subsequently passed by the Parliament of Ghana.

Consequently, the government, through the Ghana Revenue Authority (GRA), decided to delay the implementation date to listen to the concerns of the oil marketing companies.

The GRA, in an interview with Accra-based Citi FM, stated that it postponed the implementation date in the spirit of 'cordiality and partnership'.

“The Association has concerns with the 9 June implementation date. We have discussed with their leadership in the spirit of cordiality and partnership and have agreed on a new start date of 16 June,” the GRA said during the interview.

Parliament amends energy sector levy

On Tuesday, June 3, 2025, the Parliament of Ghana passed the Energy Sector Levy (Amendment) Bill, 2025.

Per the new amendment, the government has imposed a levy on petroleum products. This means consumers will pay GH¢1 for every litre of fuel they buy from filling stations.

The bill was introduced in Parliament by Finance Minister Dr Ato Forson under a certificate of urgency.

During his speech in Parliament, he disclosed that the energy sector's total debt had reached US$3.1 billion as of March 2025.

He added that at least US$3.7 billion would be required to settle the debt fully, with an additional US$1.2 billion needed for the procurement of fuel necessary for thermal power generation throughout 2025.

The post about the revised implementation date for the levy is below:

Energy Minister explains the GH¢1 fuel levy

Meanwhile, the Minister of Energy and Green Transition, John Abdulai Jinapor, explained that the revised levy was not intended to settle the energy sector’s legacy debts.

In an interview with Joy FM, he stated that after assessing the energy sector, the government discovered that liquid fuel used in the country was not included in the tariff structure.

He further explained that the government needed over US$1 billion this year alone to purchase liquid fuels.

Jinapor emphasised that even if all citizens paid for the electricity they consumed and the Electricity Company of Ghana (ECG) collected 100% of the payments, the money would not be enough for the procurement of liquid fuel.

Energy experts warns Finance Minister

In a related development, YEN.com.gh reported previously that the Executive Director of ACEP, Benjamin Boakye, warned the Finance Minister against repeating the mistakes of his predecessor, Ken Ofori-Atta in relying heavily on taxes.

He criticised the GH¢1 fuel levy, calling it a poor way to address the sector's inefficiencies, which require decisive leadership. In a post online, the ACEP boss stated that taxes would not address the inefficiencies in the country's energy sector.

Proofreading by Bruce Douglas, copy editor at YEN.com.gh.

Source: YEN.com.gh