The recent passage of the Energy Sector Levies (Amendment) Bill, 2025, in Ghana’s Parliament has ignited a heated debate about the government’s fiscal policies and their impact on citizens. The amendment introduces a GHS1 levy on each litre of fuel, aimed at generating GHS5.7 billion annually to address the escalating debt within the energy sector. The government argues that this measure is crucial to prevent a potential collapse of the sector, citing the substantial financial liabilities inherited from the previous administration. This new levy, however, has been met with fierce opposition from the New Patriotic Party (NPP), who accuse the current administration of backtracking on promises to reduce the tax burden on Ghanaians. They contend that this new levy contradicts earlier commitments and will further exacerbate the economic hardships faced by ordinary citizens.
Professor Ransford Gyampo, Acting Chief Executive Officer of the Ghana Shippers Authority, has entered the fray, publicly criticizing the NPP’s stance. He argues that Ghanaians are more willing to contribute to levies that demonstrably address national challenges, rather than those perceived as being mismanaged or misused. Prof. Gyampo expressed confidence in Finance Minister Dr. Cassiel Ato Forson’s stewardship, suggesting that he believes the funds generated from the new levy will be utilized responsibly to tackle the energy sector’s debt crisis. This contrasts sharply with the NPP’s implied accusations of potential mismanagement, highlighting the deep political divisions surrounding this fiscal policy.
The core of the disagreement revolves around the perceived necessity of the levy and the trust in its management. The government maintains that the levy is a necessary evil, essential to stabilize the energy sector and avert a looming crisis. They argue that the accumulated debt poses a significant threat to the nation’s energy security and requires immediate action. The NPP, however, views the levy as an additional burden on an already struggling populace, accusing the government of fiscal mismanagement and broken promises. This difference in perspective reflects the broader political dynamic, with the opposition party scrutinizing the ruling party’s economic policies.
Prof. Gyampo’s intervention underscores the importance of public trust in the government’s handling of public funds. His argument hinges on the belief that Ghanaians are willing to make financial sacrifices if they are convinced that the funds will be used effectively to address critical national issues. He implicitly criticizes the previous administration, suggesting that past levies may have been mismanaged, thereby eroding public trust. This highlights the importance of transparency and accountability in fiscal policy, particularly when new taxes are introduced.
The debate surrounding the fuel levy also raises broader questions about the long-term sustainability of Ghana’s energy sector. While the government’s immediate focus is on addressing the current debt crisis, the underlying issues that contributed to this situation need to be addressed. This includes exploring strategies to improve efficiency, reduce waste, and diversify energy sources. A comprehensive approach is needed to ensure the long-term stability and affordability of energy for all Ghanaians.
Ultimately, the success of the new fuel levy will depend not only on its ability to generate the necessary revenue but also on the government’s ability to demonstrate that the funds are being used judiciously and transparently. Building public trust is crucial to securing public support for difficult economic decisions. The ongoing debate underscores the need for open dialogue and constructive engagement between the government, opposition parties, and the public to find sustainable solutions to the challenges facing Ghana’s energy sector.
