Government Postpones Implementation of GH¢1 Energy Sector Levy for the Second Time

• The Government of Ghana has again postponed the implementation of the revised energy levy indefinitely
• According to the Commissioner-General of the Ghana Revenue Authority, the postponement was based on a directive from the Finance Minister
• Parliament recently passed a GH¢1 fuel levy to help reduce energy sector debt and support the procurement of thermal fuel

The Government of Ghana has postponed indefinitely the implementation date of the revised energy sector levy from June 16, 2025.

The Ghana Revenue Authority (GRA) shared a statement which indicated that the levy implementation was postponed based on a directive from the Minister of Finance, Casiel Ato Forson.

The statement issued on Friday, June 13, 2025, was signed by the GRA Commissioner-General, Anthony Kwasi Sarpong, who copied all ports and stations so they would comply with the directive.

“The directive is issued to postpone the implementation date of Tariff Interpretation Order (TIO) No. 2025/004 relating to the Energy Sector Levies (Amendment) Act, 2025 (Act 1411).”

“This follows a directive from the Minister of Finance, after consultation with stakeholders.”

He indicated that a new date for implementation will be communicated at an appropriate time.

“Accordingly, the increase in the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) for selected petroleum products, which would have to take effect from the 16th of June 2025, has been postponed. A new effective date will be communicated in due course.”

Mahama's government suspends the GH¢1 fuel levy

This is not the first time the Mahama-led administration has postponed the implementation of the GH¢1 Energy Sector Levy.

The initial implementation date was set for Monday, June 9, 2025. However, the government announced a new date (June 16, 2025).

At the time, the government said it rescheduled the implementation date after the Chamber of Oil Marketing Companies (COMAC) raised concerns about the timing and potential impact of the levy on their business operations and consumers.

Energy Minister explains the GH¢1 fuel levy

Meanwhile, the Minister of Energy and Green Transition, John Abdulai Jinapor, said the new levy will be used to pay off the energy sector’s legacy debts.

In an interview with Joy FM, he stated that after assessing the energy sector, the government discovered that liquid fuel used in the country was not included in the tariff structure.

He further stated that the government needed over US$1 billion this year alone to purchase liquid fuels.

John Abdulai Jinapor added that even if every consumer paid for the electricity they used and the Electricity Company of Ghana (ECG) collected 100% of the payments, the money would not be enough for the procurement of liquid fuel.

Parliament approves GH¢1 fuel levy

On Tuesday, June 3, the Energy Sector Levy (Amendment) Bill, 2025, which introduces a GH¢1 levy on petroleum products, was approved.

The Finance Minister, Dr Cassiel Ato Forson, presented the bill in Parliament under a certificate of urgency.

Dr Forson stated that the total indebtedness of the energy sector was US$3.1 billion as of March 2025.

He explained that a minimum of US$3.7 billion was needed to completely clear this debt.

Source: YEN.com.gh