The International Monetary Fund (IMF) has approved Ghana’s Energy Sector Shortfall and Debt Repayment Levy, calling it a strategic initiative that aligns with the country’s fiscal goals under the Extended Credit Facility (ECF) program. The levy, which imposes a charge of GH¢1 per liter on petroleum products, aims to address long-standing debt and financial shortfalls in the energy sector.
During a press briefing, Julie Kozack, the Director of the IMF’s Communications Department, stated that this revenue measure will be crucial in helping Ghana tackle structural issues within the sector, while also supporting broader fiscal reforms. She emphasised, “This new measure will generate additional resources to address the challenges in Ghana’s energy sector, and it will enhance Ghana’s ability to meet the fiscal objectives outlined in the program.”
The levy has faced criticism from the Minority in Parliament, who argue that it increases the financial burden on consumers who are already struggling. However, the government maintains that the impact on consumers will be minimal, citing that current fuel prices at the pump are still lower than those during previous periods of high inflation.
An agreement between the government and the Chamber of Oil Marketing Companies has delayed the implementation date of the levy from June 9 to June 16, 2025. In the meantime, stakeholders in the energy sector—including the Chamber of Petroleum Consumers—are urging the government to use this extension period to engage more deeply with affected parties and enhance transparency regarding the levy’s application.
By: Daniel Sackitey
