The current government has firmly defended the recently enacted Energy Sector (Amendment) Act, 2025, which introduces a GHC1 levy on every litre of refined petroleum product. The Chairman of Parliament’s Energy Committee, Emmanuel Kwasi Bedzrah, vehemently rejected accusations that the government misled Ghanaians in the passage of the Act, describing such claims as “false, misleading, and politically motivated.”
Speaking at a press conference on Tuesday, the Chairman clarified that the GHC1 fuel levy is a strategic intervention designed to rescue Ghana’s struggling power sector without imposing a direct hike on electricity tariffs for consumers.
“As of December 2024, the energy sector was bleeding, with a USD 3.1 billion debt,” Bedzrah stated. “Of that amount, USD 1.7 billion was owed to Independent Power Producers. Every month, we incur a GHC2 billion deficit just to keep the lights on.”
He argued that while the Public Utilities Regulatory Commission (PURC) had indicated that a 50% tariff increase would be necessary to cover the escalating cost of power generation, the Mahama-led government has consciously chosen not to transfer this burden to consumers. Instead, the new levy is projected to generate approximately GHC5.7 billion annually. This revenue is intended to cushion the energy sector financially, thereby enabling the maintenance of current, affordable electricity tariffs.
“This is not a deception,” Bedzrah emphasized. “It is responsible governance ensuring reliable electricity supply without placing undue financial pressure on Ghanaians.”
The bill, recently passed by Parliament, has faced criticism from the Minority in Parliament, who contend that the move is deceptive and will impose an additional financial burden on citizens. However, the government maintains that the levy is a critical measure for the long-term stability and sustainability of Ghana’s energy sector.
Story By: Eugenia Ewoenam Osei
