—Accuses Government of Betrayal and Hypocrisy

The Minority Caucus in Ghana’s Parliament has strongly criticized the government for introducing an additional levy on petroleum products, equivalent to GHS 1 per liter, to address the country’s energy sector debt.

Labeling the move as hypocritical and a betrayal of public trust, the Minority argued that the Energy Sector Levies (Amendment) Bill, 2025, was passed in a clandestine and hasty manner.

During a press conference held on Monday, June 9, 2025, Ranking Members George Kwame Aboagye (Energy Committee) and Kojo Oppong Nkrumah (Economy and Development Committee) called out the ruling government for what they termed a 360-degree reversal on its campaign promises.

“A Painful Pill” for Ghanaians

The Minority described the levy as a “painful pill” imposed on Ghanaians without adequate consultation or transparency.

According to them, the bill was rushed through Parliament under a certificate of urgency and was not included in the business statement for the week or adequately advertised to stakeholders.

Hypocrisy and Contradictions

The Minority accused the National Democratic Congress (NDC) government, led by President John Dramani Mahama, of breaking its promise not to impose taxes to address inefficiencies in the energy sector.

Referencing past statements by Finance Minister Dr. Cassiel Ato Forson, the caucus highlighted how the government had previously assured Ghanaians it would not introduce new levies for debt payment.

Contradictory explanations from government officials further fuelled the Minority’s criticisms. While President Mahama stated in May 2025 that proceeds from the levy would pay down arrears, Deputy Energy Minister John Jinapor claimed the funds would be used for fuel procurement.

An “Unrealistic” Levy

The Minority also questioned the feasibility of the levy in addressing the energy sector’s $3.7 billion debt.

They noted that the estimated GHS 9 billion revenue from the levy by 2026 would be insufficient to cover the debt, raising doubts about the government’s debt repayment strategy.

Comparing D-levy to E-levy

Drawing comparisons with the erstwhile E-levy, the Minority argued that the new levy is more burdensome on Ghanaians.

While the E-levy had a 1% rate and exempted small transactions, the D-levy imposes an 8% charge on all petroleum purchases, disproportionately affecting low-income citizens.

Proposed Alternatives

The Minority suggested pragmatic alternatives to address the energy sector debt, including:

Renegotiating power purchase agreements (PPAs) to eliminate unsustainable take-or-pay clauses.

Enhancing operational efficiencies within GRIDCo and ECG to reduce technical and distribution losses.

Increasing investments in renewable energy, as promised in the New Patriotic Party (NPP) 2024 manifesto.

Next Steps

The Minority pledged to intensify advocacy efforts against the levy by engaging civil society organizations, driver unions, and other stakeholders.

They also vowed to support the Chamber of Oil Marketing Companies, which has decried the growing tax burden on the downstream petroleum sector.

The Minority concluded by urging the government to withdraw the levy and adopt their proposed alternatives to ensure a fairer and more sustainable resolution to the energy sector crisis.

 

Source: Felix Nyaaba/expressnewsghana.com

 

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