Politics

Minority Opposes GHS1 Fuel Levy Hike, Calls It Unnecessary Burden on Ghanaians

Opposition calls for transparency and better management instead of passing costs to consumers

The Minority Caucus in Parliament has strongly rejected the proposed GHS1 increase in the fuel levy under the Energy Sector Levy (Amendment) Bill, 2025, describing it as an unfair and untimely burden on Ghanaians.

The government argues the levy hike will generate an additional GHS5.7 billion to address the energy sector’s mounting debts and secure stable power supply.

However, the Minority contends that increasing the fuel levy will place extra financial strain on consumers already grappling with high living costs.

Finance Minister Dr. Cassiel Ato Forson stated that the energy sector debt stands at $3.1 billion, with $3.7 billion needed to fully clear arrears. He also noted the need for $1.2 billion to procure fuel for thermal power in 2025. Despite these claims, the Minority criticized the government’s approach, arguing that the levy increase will ultimately affect fuel prices and deepen hardship for ordinary citizens.

During the debate on Tuesday, June 3, members of the Minority walked out in protest, asserting that the Majority lacked the required numbers to make the bill’s approval binding. They labeled the decision as undemocratic and called on the government to seek alternative solutions rather than imposing more taxes on the public.

The Minority insists that the government should prioritize efficient management of resources and transparency in tackling the energy sector’s financial challenges without resorting to additional levies that hurt consumers.

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