IMF Director of Communications, Julie Kozack,
The International Monetary Fund (IMF) has endorsed the introduction of a GH¢1 per litre levy on refined petroleum products, set to take effect on June 16, 2025.
This levy, part of the amended Energy Sector Shortfall and Debt Repayment Levy, is intended to generate critical revenue to address Ghana’s mounting energy sector debt.
Ghana currently records a monthly deficit of GH¢2 billion in the energy sector. The government is grappling with a total sector-wide debt of US$3.7 billion, including more than US$1.7 billion owed to Independent Power Producers (IPPs).
The country’s heavy reliance on thermal power generation, along with an annual expenditure of over US$1.1 billion on liquid fuel purchases, has further strained the energy system. However, the cost of these fuels is not reflected in electricity tariffs, resulting in a widening funding gap.
IMF Director of Communications, Julie Kozack, stated that the new fuel levy would bolster Ghana’s efforts to meet its fiscal targets under the ongoing bailout program.
“This is a new measure that will help generate additional resources to tackle the challenges in Ghana’s energy sector and bolster Ghana’s ability to deliver on the fiscal objectives under the program,” she said.
Kozack also acknowledged the recent appreciation of the Ghanaian cedi, noting that it could influence future program adjustments.
“Future program reviews will provide an opportunity for the team to carefully assess all evolving macroeconomic and financial conditions, including exchange rate movements, to ensure that the program’s targets and objectives remain appropriate and achievable,” she added.
Pending approval by the IMF Executive Board, Ghana is expected to receive a US$370 million disbursement in early July 2025. This would mark the fourth disbursement under the Extended Credit Facility (ECF) program, bringing total IMF support to US$2.4 billion since May 2023.