The energy sector in Ghana is teetering on the edge of collapse unless urgent financial intervention is undertaken, Finance Minister Dr. Cassiel Ato Forson has warned.
Presenting the Energy Sector Levy (Amendment) Bill, 2025 to Parliament, Dr. Forson sounded the alarm over the crippling debt levels within the sector, which he says require a minimum of $3.7 billion to wipe clean.
“A minimum of $3.7 billion is needed to clean up the overall energy sector’s indebtedness for us to have a clean slate,” he told Parliament.
In addition to clearing the debt, the minister revealed that the government would need a further $1.2 billion in 2025 just to procure fuel for thermal power generation.
“In the year 2025, the government will require an additional $1.2 billion to procure essential fuel for thermal power generation alone. The power sector risks imminent collapse if these unsustainable debts are not resolved.”
To address the shortfall, the government is proposing a GH¢1 increase in the energy sector levy on petroleum products, affecting diesel, petrol, and related fuels. This move, according to the Minister, forms part of a broader strategy to raise much-needed revenue to sustain electricity supply and keep the sector afloat.
However, he was quick to assure Ghanaians that the proposed increase will not translate into higher pump prices for consumers due to recent gains made by the Ghana cedi.
“The government is proposing an increase in the X pump price of diesel, petrol, and related products. The impact will be absorbed by the gains made from the strong performance of the Ghana cedi. And this will mean that consumers will not have to pay extra for the price of diesel and petrol, beginning today, June 3.”
The Energy Sector Levy (Amendment) Bill, 2025 is now under review in Parliament, as the government races against time to stabilize the power sector and avoid widespread outages and operational setbacks.
