Franklin Cudjoe, Founding President of IMANI Africa, has strongly criticized Parliament’s swift approval of the Energy Sector Levy (Amendment) Bill, 2025, which imposes a GH¢1 levy on every litre of petroleum products.
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He urged the Energy Minister to withdraw the bill and instead focus on cutting waste within the energy sector to generate the needed revenue.
Reacting on Facebook shortly after the bill passed, Cudjoe wrote, “That quick? Fastest pickpocketing ever!”
Before the bill’s approval, he had cautioned against it, suggesting:
“Dumsor Levy replaces E-levy? My dear brother, Energy Minister, please discontinue this dream immediately. There’s a lot of waste in the sector you’re aware of. We can help you cut the waste now!”
More Concerns Raised by Civil Society
Dr. Steve Manteaw, another respected civil society advocate, also voiced concern. He warned that the new levy could raise transport fares and food prices, undermining the government’s calls for traders to reduce costs.
According to Dr. Manteaw, applying the GH¢1 levy per litre is too burdensome for consumers. He proposed that the levy should either be imposed per gallon or reduced to 25 pesewas per litre to reduce the financial strain on citizens.
In a detailed Facebook post titled “My Take on the Proposed Amendment of the Energy Sector Levy”, he noted:
Although well-intended, the amendment lacks a strong accountability mechanism. This makes it vulnerable to abuse and misapplication. It may also worsen the cost of living. To avoid that, let’s consider a sunset clause and explore gains from the Cedi’s resurgence and rising gold and cocoa prices to help pay off the energy sector debt.”
Bill Approved Despite Protests
Despite opposition from the Minority in Parliament, the bill was passed under a certificate of urgency on Tuesday, June 3. The new levy is expected to raise about GH¢5.7 billion annually to address shortfalls and settle legacy debts in the energy sector.
Finance Minister Dr. Cassiel Ato Forson said Ghana’s energy sector debt currently stands at US$3.1 billion as of March 2025. He added that at least US$3.7 billion is needed to clear the debt, with another US$1.2 billion required to purchase fuel for thermal power generation in 2025.
Dr. Forson assured Parliament that the impact of the levy on fuel prices would be offset by gains from the strong Ghanaian Cedi, implying consumers would not face immediate price hikes.
Minority Pushes Back, Walks Out
The Minority caucus in Parliament did not support the bill. During the debate, they accused the government of burdening Ghanaians with more taxes under the guise of reforms.
One MP argued, “Just last month, PURC increased electricity by 14.7% and water by 4.02%. Now, less than a month later, the government returns to hiking taxes again. Is this what they promised Ghanaians?”
They also criticized the replacement of the unpopular E-Levy with what some are calling a “Dumsor Levy.”
As a form of protest, Minority MPs staged a walkout during the bill’s approval process.
