Member of Parliament for Effia, Isaac Boamah Nyarko, has described the recent GHS1 increase on the Energy Sector Levy as excessive.
This comes amid growing controversy following the passage of the Energy Sector Levy (Amendment) Bill, 2025, which authorises the upward adjustment of the levy on petroleum products. The increase has sparked public backlash, with concerns about its impact on the already burdened cost of living.
In an interview on Channel One Newsroom on Wednesday, June 4, the Effia MP expressed frustration over the government’s decision, citing inconsistency with earlier promises to reduce taxes.
He emphasised that the newly introduced levy is significantly higher than the electronic levy (e-levy) implemented by the previous government, a policy the current administration vehemently criticised and later abolished.
“You owed it to the good people of Ghana, you promised them that you were removing taxes. You took away the e-levy. E-levy was just 1% up to a cap, and it was generating 1.2 billion, and we had an issue with e-levy. If someone sends GHS1000, he is charged only GHS10, and we made noise about removing e-levy, and we thought we had done a good thing for Ghanaians.
“Five months down the line, less than three months, we are here facing more than 400 percentage points in terms of taxation, and I think that is too much. We should let the people of Ghana understand that the government is not deceitful. We are saying that the levy and the quantum are too much,” he said.
The GHS1 fuel levy, introduced under the Energy Sector Levy (Amendment) Bill, 2025, is expected to generate GHS5.7 billion annually. The government has pledged that all revenue from the levy will be ring-fenced for critical energy-related expenditures, including debt repayment and fuel procurement, ensuring a stable power supply.
However, the bill’s passage was met with resistance from the Minority Caucus. Members walked out during the vote, arguing that the Majority side lacked the quorum necessary to legally approve the measure. The Minority also criticised the levy as ill-timed and burdensome for Ghanaians.
GHS1 fuel levy hike ‘difficult but necessary’ – Mahama