The Minister for Finance, Dr Cassiel Ato Forson, has presented the Energy Sector Levy Amendment Bill to Parliament, seeking an increase in the current rate.

According to the minister, the bill aims to address financial challenges in the energy sector, particularly to raise funds to cover energy sector indebtedness, including payment shortfalls and reducing the debt associated with the Energy Sector Recovery Levy (ESLA).

Addressing Parliament on Tuesday, June 3, 2025, the minister underscored that the recent appreciation of the cedi would absorb the impact of this increase, with no significant net effect expected on consumers.

In response, the Minority Leader of Parliament, Alexander Kwamena Afenyo-Markin, accused the government of deceiving Ghanaians by pretending to remove taxes while introducing more taxes.

“You claimed to have cancelled the E-Levy, but you eventually want to reintroduce the E-Levy,” he stated.

In response, the Majority Leader of Parliament, Mahama Ayariga, argued that the new levy, expected to be pegged at GH¢1, is insignificant in the face of the need to support the energy sector and deal with the persistent issue of erratic power supply, also known as ‘dumsor.’

“What is before us is not the E-Levy; what is before us is the Energy Sector Levy Amendment Bill. It is saying that Ghanaians should give just GH¢1 each when they buy a litre of fuel so that we can end dumsor,” he stated.

The Second Deputy Speaker, Bernard Ahiafor, who was presiding, referred the bill to the Finance Committee for further action.

The Energy Sector Recovery Levy, established under the Energy Sector Levies Act, 2015, and amended in 2021, currently imposes a 20 pesewas per litre charge on petrol and diesel and 18 pesewas per kilogram on LPG to address the sector’s $1.2 billion debt and fund fuel for thermal power plants.