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Gov’t proposes ₵1 Tax on petroleum products to tackle power crisis under new energy levy bill

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Gov’t proposes ₵1 Tax on petroleum products to tackle power crisis under new energy levy bill

Gov’t proposes ₵1 Tax on petroleum products to tackle power crisis under new energy levy bill

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The Government of Ghana has proposed a new Energy Levy Bill that would impose a ₵1 charge on every litre of petroleum products, aiming to raise funds to combat the country’s persistent power outages, popularly known as dumsor.

The proposed levy is expected to support the energy sector with the revenue generated particularly from the purchase of light crude oil—to power thermal plants and stabilize electricity generation across the country.

This initiative follows growing concerns about the state of Ghana’s energy sector, including recent warnings from the Ghana Grid Company (GRIDCo) that the country risks deeper outages without immediate financial intervention.

Minister for Finance, Dr. Cassiel Ato Forson, mentioned the levy in Parliament earlier today, stating that it would generate sufficient revenue “to fund the needs of Ghana’s power sector.” He explained, “Government is proposing an ex-pump price adjustment on petrol, diesel, and related products. The impact will be absorbed by the gains made through the strong performance of the Ghana cedi.” “This will ensure that Ghana enjoys stable electricity,” he added.

The Energy Amendment Bill is currently under deliberation in Parliament and is expected to play a key role in enhancing the country’s energy sector.

Tags: ₵1 TaxEnergy SectorPetroleum

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