Dr Steve Manteaw is the Co-Chair of GHEITI
The Co-Chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), Dr Steve Manteaw, has raised a red flag over the government’s proposed amendment of the Energy Sector Levy, warning that the move could have unintended consequences on the economy and consumers.
Parliament on Tuesday, June 3, 2025, approved the Energy Sector Levy (Amendment) Bill 2025, which introduces a GH¢1 increase on the levy on petroleum products.
The measure is expected to generate an additional GH¢5.7 billion in revenue to help reduce energy sector debts and ensure stable power supply.
In a post on his Facebook page on Wednesday, June 4, 2025, and sighted by GhanaWeb Business, Dr Manteaw noted that the amendment lacks strong accountability framework, stating that the levy could lead to an increase in transport fares and food prices, undercutting the government’s efforts to stabilise the economy.
According to Dr Mateaw, the proposed levy’s charge of Ghc1 per litre of fuel is “too onerous” for consumers, suggesting instead, a charge per gallon or a reduced rate of 25 pesewas per litre to minimise its economic impact.
He also called for a sunset clause to prevent the levy from becoming a permanent fixture, citing the long-standing TOR Debt Recovery Levy as a cautionary example.
As an alternative, Dr Manteaw proposed leveraging recent economic gains such as the cedi’s resurgence and rising gold and cocoa prices, to help reduce energy sector debt without shifting the burden onto consumers.
His remarks fall on the back of intensified public debate over how best to resolve the financial challenges in Ghana’s energy sector without increasing hardship for ordinary citizens.
Below is Dr Steve Manteaw’s take on the proposed amendment of the Energy Sector Levy
1. Well intended, but lacks strong accountability mechanism. This exposes it to potential abuse, including misapplication.
2. May adversely affect transport fares and food prices, undermining government’s call on traders to reduce prices.
3. 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.
4. Provide a sunset clause, so that, it does not assume a perpetual character, like the TOR debt Recovery Levy.
5. 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.
SP/VPO
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