Energy Minister told to focus on cutting wastes in the sector, not introduction of taxes

The Minister of Energy and Green Transition, John Jinapor, has been urged to focus on cutting waste in the energy sector in order to rake in the needed revenue.

Founding President of IMANI Africa, Franklin Cudjoe, who made the call, indicated that civil society activists are prepared to assist the Minister to address the waste in the sector.

Franklin Cudjoe made these comments while registering his displeasure with the approval of the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on petroleum products.

Commenting on the approvals on his Facebook page, he wrote, “That quick? Fastest pickpocketing ever!”

Prior to the approval of the tax, he had suggested that “Dumsor Levy replaces E-levy? My dear brother energy minister, please discontinue this dream immediately. Please there is a lot of waste in the sector you are aware of. We can help you cut the waste now.!! ”

Another Civil society activist, Dr Steve Manteaw, also expressed fears that the Energy Sector Levy (Amendment) Bill, 2025, which has introduced a GH¢1 levy on petroleum products, will affect transport fares and food prices, undermining the government’s call on traders to reduce prices.

He also says that it is too onerous for consumers if placed on a littre of petroleum products.

In his view, it should rather be placed on a gallon, or reduced to 25p per littre to moderate its effect on the cost of living.

In a post on his Facebook page titled “MY TAKE ON THE PROPOSED AMENDMENT OF THE ENERGY SECTOR LEVY” he said “Well intended, but lacks strong accountability mechanism. This exposes it to potential abuse, including misapplication. May adversely affect transport fares and food prices, undermining government’s call on traders to reduce prices. Too onerous for consumers if placed on a litre of petroleum products. Should rather be placed on a gallon, or reduced to 25p per litre to moderate its effect on cost of living. Provide a sunset clause, so that, it does not assume a pertual character, like the TOR debt Recovery Levy. Maybe, we should leverage on the gains from the Cedi’s resurgence and rising gold and cocoa prices to defray part of the energy sector indebtedness.”

Consumers are going to pay GHC 1 per litre to address energy sector shortfalls and debt repayment.

This was after Parliament, under a certificate of urgency, approved the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on petroleum products on Tuesday, June 3.

The passage of this bill is expected to generate an additional GH¢5.7 billion in revenue annually to address the energy sector’s financial woes.

The Finance Minister, Dr. Cassiel Ato Forson stated that the energy sector’s total indebtedness stands at US$3.1 billion as of March 2025.

He further explained that a minimum of US$3.7 billion is required to fully clear this debt, with an additional US$1.2 billion needed to procure essential fuel for thermal power generation throughout 2025.

The Minister assured Parliament that the impact of the new levy on ex-pump prices would be “absorbed by the gains made from the strong performance of the Ghana Cedi”, meaning consumers would not experience an immediate price hike.

The Minority in Parliament vehemently opposed the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on petroleum products.

They described it as an inappropriate burden on Ghanaians.

“I am wondering how Dafeamekpor will explain to his constituents. Just last month, PURC increased electricity by 14.7 per cent, and water increased by 4.02 per cent. Here we are, less than one month, and they are back here to increase the taxes again. Is that what they promised the people of Ghana? Is this the reset they are talking about?

“You are taking off E-Levy, now you are bringing Dumsor Levy, this is e-levy promax. We, the mighty minority, we stand with the Ghanaian people,” one of the minority MPs said during the debate on the floor on Tuesday, June 3.

They staged a walkout during the approval process to register their displeasure.