The implementation of a new fuel levy by the Mahama administration has drawn sharp criticism from Minority Leader Alexander Afenyo-Markin.
He emphasized that Ghanaians are not expecting new taxes, particularly after the government pledged in its 2025 Budget Statement that no new taxes or levies would be introduced.
“You presented your budget saying you are not going to introduce new taxes and levies. Then you turn around and say you are repealing the e-levy, only to bring it back again. You repeal the e-levy and reinstate it,” Afenyo-Markin stated during a parliamentary session on Tuesday, June 3.
Former Finance Minister Dr. Mohammed Amin Adam also raised concerns about the government’s move, questioning why a new petroleum tax was being enacted despite the recent announcement of tax removals. Consumers are now expected to pay GH¢1 per litre of fuel to help offset debt and address energy sector shortfalls.
On June 3, Parliament passed the Energy Sector Levy (Amendment) Bill, 2025 under a certificate of urgency. The bill introduces a GH¢1 levy on petroleum products, projected to generate an additional GH¢5.7 billion annually to support the struggling energy sector.
According to Finance Minister Dr. Cassiel Ato Forson, as of March 2025, the energy sector’s debt stands at US$3.1 billion. He stated that at least US$3.7 billion will be needed to clear this debt, along with an additional US$1.2 billion to purchase fuel to operate thermal plants throughout the year.
To ease concerns over potential price hikes, Dr. Forson assured Parliament that the new levy would not immediately affect fuel prices, as the cost would be absorbed by gains from the Ghana Cedi’s strong performance.
However, critics remain unconvinced. Addressing Parliament, Karaga MP Dr. Amin Adam said:
“Not long ago, they were here celebrating the abolition of taxes. But I am sorry to say that all the taxes they abolished, put together, did not amount to GH¢5 billion.
Now, this government is seeking to raise GH¢5.7 billion through an increase in petroleum product levies.
Mr. Speaker, I said during the budget debate that this government, in abolishing taxes, was giving something into our hands with the left hand—only to take it back with the right hand. And not just take from our hands, but also from our pockets. This is exactly what they are doing with these new fuel taxes.”
By Najat Adamu
