President Mahama on Thursday signed into law an amendment to the Energy Sector Levy Bill, 2025, which would require vehicle owners to pay GH₵1 on each litre of petroleum products they purchase.
The bill, introduced this week, has faced opposition from the minority in Parliament, who walked out during its passage under a certificate of emergency on Wednesday.
The government argues that the levy is projected to inject an extra GH¢5.7 billion annually into Ghana’s struggling energy sector, whose debts had reached US$3.1 billion by March 2025.
READ ALSO:
-
African Women in Media Releases 25 Groundbreaking Stories on African Cross-Border Migration Through a Gendered Lens with Move Africa 2025
-
Galamsey Bribery Case: Wontumi’s Aide Convicted
-
NPP Leadership Race: New Face Shakes Up June 2025 Polls, Patrick Boamah Leads
President Mahama himself has said that while the levy may place additional burdens on households and businesses, it has a necessary undertaking to
“At that stage the resources generated by the increased levy will be channeled to pay down accumulated legacy debts in the power sector. With the recent gains in macro stability and the strengthening of the Ghana cedi, this levy is not expected to result in immediate fuel price increases at the pump. We are fully aware of the burden this will place on households and businesses, but I want to assure Ghanaians that this decision was not taken lightly,” the president said via government spokesperson Felix Kwakye Ofosu.
However, opposition MPs do not agree.
“This is not just about a one cedi increase, it is about the soul of our nation. If you look at the impact analysis that they did, it is suspect in my view. The Minority, in the coming days, in solidarity with the Ghanaian people, will be staging many actions to demand the withdrawal or the reversal of this tax,” said Frank Annoh-Dompreh, the Minority Chief Whip, when he spoke to journalists on Thursday.
The Ghana Private Road Transport Union (GPRTU) is also not happy about this tax. Recently, its members reluctantly reduced transport fares in response to the consistent drop in fuel prices.
Abass Ibrahim Imoro, the Public Relations Officer of the GPRTU, says transport operators may strike against the implementation of the levy.
“We are therefore calling on the government to reverse the levy immediately and engage us and stakeholders on the way forward. In the event that our call is not heeded, we will be compelled to take industrial action and park our vehicles on June 10, 2025.”
Since the levy was introduced, many have termed it the “dumsor levy.”