
Inflation in emerging economies, including Ghana, to hit 5.1% in 2026 – World Bank
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30th April 2026 10:24:29 AM
4 mins readBy: Phoebe Martekie Doku

The Minority in Parliament has submitted a Right to Information (RTI) request demanding full disclosure of revenues generated under the Energy Sector Levies Act. The Caucus, in recent times, has called on the government to provide detailed data on how funds accrued from the GH¢1levy have been utilized.
Addressing the media on Wednesday, April 29, the Minority Chief Whip stated that their demands have become necessary given the persistent power outages across the country, adding that the government must be held accountable for how revenues from the levy are collected, managed, and utilized to address the ongoing energy challenges.
Last year, the President John Dramani Mahama-led government implemented a GH¢1 fuel levy on petroleum products. This move falls under the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), which was assented to by the President on June 5 to address energy-sector shortfalls, reduce legacy debts, and stabilize power supply across the country, following parliamentary approval.
“We were told that the GH¢1 levy will allow the government to keep the lights on, and so now the question is, why are our lights not on? We were told that we were paying the GH¢1 to use it to buy fuel, but when the NPP was leaving, we handed fuel to them, and so the question is why Ghanaians must continue to sleep in darkness, and businesses are collapsing.
“It is necessary for us to know what they used the revenue for because we are experiencing dumsor everywhere in the country,” he added.
President Mahama stated that "initially much of this revenue will go to the purchasing of fuel to ensure stable power of electricity."According to him, the levy will also help reduce the use of liquid fuel in the energy mix, as it expects more gas from the ENI, Sankofa, Jubilee, and TEN fields, as well as the West African Gas Pipeline.
"At that stage, the resources generated by this increased levy will be channeled to pay accumulated legacy debts in the power sector," he added.
He assured Ghanaians that funds generated from the newly approved GHC1 fuel levy will undergo regular audits. He explained the move is to ensure accountability and transparency.
"Funds from this levy will not be subject to the hazards of the Consolidated Fund. The fund will be regularly audited and audit reports made public to ensure its transparent use."
Energy and Green Transition Minister, John Abdulai Jinapor, has defended the government's move despite opposition from some stakeholders in the energy sector.
He noted that the timing of the introduction of the levy is apt as the cedi continues to appreciate against major trading currencies. The minister projects to generate revenue ranging between GH¢5 billion and GH¢6 billion to support the procurement of liquid fuel.
"Fuel was around GH¢16.00, and a sensitive government will not slap a tax when fuel is GH¢16.00. You couldn't have imposed that tax around that time when fuel was still very high, and so you needed to work to bring fuel down to this level and share the gain with Ghanaians. At that time, if we had increased it, you can imagine the impact on Ghanaians, but today, the net effect is that you are still having a reduction of GH¢3.00 on a litre of fuel.
"It is better to do it today than to have done it yesterday, when it would have eroded your income; today, your purchasing power has increased because of the reduction of the value of the dollar," he said while speaking on JoyFM.
Some stakeholders in the energy sector have expressed their displeasure over the approval of the Energy Sector Levy (Amendment) Bill, 2025, by Parliament and its pending implementation.
On the matter, Chief Executive Officer of the Association of Oil Marketing Companies (AOMCs), Dr Riverson Oppong Peprah, warned that the implementation of the levy could drive fuel prices higher, adding further strain on consumers and the downstream sector.
“When fuel prices began to fall, it wasn’t because the cedi gained stability; rather, it was due to a drop in plant prices caused by the decline in West Texas Intermediate (WTI) crude oil prices. Only after that did the cedi stabilise and support the downward trend.""As we speak today, plant prices are already rising again. So, I urge the government to reconsider this levy since there are other options," he counseled.
Also, Executive Director of the Centre for Environment and Sustainable Energy Benjamin Nsiah has raised similar concerns, calling the introduction of the levy "unfair."
“This approach is not only tired but unfair. We’ve seen this playbook before. The Energy Sector Levies Act (ESLA) and the Energy Sector Recovery Levy have provided a lasting solution to the underlying issues. It’s not about collecting more. It’s about managing what’s already collected,” he added.
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