Future of GH₵1 fuel levy hinges on energy sector performance – Energy Ministry

Future of GH₵1 Fuel Levy Hinges on Energy Sector Performance – Energy Ministry
By Top Knowledge Media – July 15, 2025

Richmond Rockson, Head of Communications at the Ministry of Energy, has confirmed that the recently introduced GH₵1 per litre fuel levy will either be continued or scrapped based on its effectiveness in addressing energy sector challenges 

Speaking on Joy FM's Super Morning Show on July 14, 2025, Rockson explained the levy was introduced to fund thermal fuel procurement, as part of efforts to conquer Ghana's recurrent power outages, popularly known as "dumsor"

“Once we are making progress, we will review it, and a decision will be made whether or not the tariff should even move from the current additional Gh₵1 or we should discard it totally,” Rockson stated. The levy will begin with collection at the pump by the Ghana Revenue Authority starting July 16, 2025

⚙️ Why There's No Sunset Clause… Yet

On TV3 KeyPoints, Rockson elaborated on the Ministry's stance that because “there were huge inefficiencies in the energy sector,” the levy could not have a fixed end date until these challenges were resolved. He added that with GH¢80 billion in energy sector debt and IPP arrears over US$1.75 billion, structural reforms must precede any sunset mechanism

???? Performance Will Determine Future

The Energy Ministry has made it clear that the levy’s fate depends on achieving measurable improvements:

• Debt repayment: Clearing legacy energy arrears.

• Fuel procurement: Ensuring efficient, uninterrupted thermal fuel supply.

• Power stability: Significantly reducing the frequency and severity of "dumsor".

Should these be met, the Ministry says it will review and possibly withdraw the levy 

???? Public and Expert Reactions

• COMAC (Oil Marketing Chamber) warns the levy might “collapse downstream businesses”, as cumulative taxes on fuel rise to approximately 26% of the pump price, squeezing margins and potentially increasing inflation 

• Experts like Prof. Godfred Bokpin and Duncan Amoah support the levy—conditional on transparency and ring-fencing of funds. Bokpin highlights that monthly revenues of GH¢400–500 million must be accounted for

• Prof. Kwaku Azar cautions that the levy alone is insufficient, advocating for audits, tariff reforms, and renegotiated IPP contracts to ensure outcome-oriented reform

???? What Lies Ahead

• Monitoring period: The levy takes effect July 16, with the Ministry committed to regular performance reviews.

• Policy pivot: The levy may be tweaked, maintained, or scrapped depending on its impact.

• Demand for accountability: Stakeholders call for transparent ring-fencing and regular reporting on proceeds and outcomes.

In Summary:
Ghana's GH₵1 fuel levy operates as a performance-linked fiscal measure—not a permanent burden. While designed to stabilize power supply and service energy debts, it remains contingent on real sector reform and measurable impact. For citizens and businesses, the key will be transparency in fund use and tangible progress in energy stability.