CSO Budget Forum Urges Time Limit on New GHS 1 Fuel Levy

Civil society actors are calling on the government to include a time-bound provision in the proposed Energy Sector Levy (Amendment) Bill, 2025, which seeks to introduce a GHS 1 charge on every litre of fuel purchased at the pump.

At a recent Civil Society Organisations (CSO) Budget Forum ahead of the 2025 Mid-Year Budget Review, Abdul Karim Mohammed, Coordinator of the Economic Governance Platform (EGP), stressed the need for a sunset clause, a legal provision that limits the duration of a law unless explicitly renewed.

“We recognise the urgency of raising funds to tackle the energy sector’s debt crisis,” Mr. Mohammed stated. “However, this levy must not become a permanent fixture. A sunset clause will ensure transparency, accountability, and public trust in the government’s fiscal strategy.”

The proposed levy is aimed at mobilising funds to offset the country’s growing energy sector liabilities, which the government estimates at $4.9 billion. Officials argue that the measure is crucial to maintaining stable power supply and financial solvency across the energy value chain, especially amid mounting arrears to Independent Power Producers (IPPs).

Nonetheless, CSOs remain cautious, warning that without clear timelines or measurable outcomes, consumers may be left to bear an indefinite financial burden.

Finance Minister Dr. Cassiel Ato Forson is expected to address the issue and provide further details when he delivers the Mid-Year Budget Review to Parliament on Thursday, July 24.