The Economic Governance Platform (EGP) has called on government to include a sunset clause in the GH₵ 1-per-litre fuel levy under the Energy Sector Levy (Amendment) Bill, 2025.
Speaking at the Civil Society Organisations (CSO) Budget Forum ahead of the mid-year budget presentation, Abdul Karim Mohammed, EGP Coordinator, warned that while the levy could stabilise the energy sector in the short term, it should not burden consumers indefinitely.
“We are calling for a clearly defined sunset clause that will ensure the levy is time-bound. This will help promote accountability and restore public confidence in the government’s management of the energy sector.” Mohammed stressed.
The government has defended the levy as a critical measure to mobilise $4.9 billion needed to clear legacy energy debts and maintain power generation in the medium term. Energy sector arrears to Independent Power Producers (IPPs) continue to threaten supply stability and undermine Ghana’s fiscal health.
A sunset clause would legally limit the levy’s lifespan, requiring Parliament to review or renew it before expiration.
Finance Minister Dr Cassiel Ato Forson is expected to provide further details on the levy and its impact when he presents the 2025 Mid-Year Budget Review to Parliament on July 24.
