Ghana Parliament Passes Energy Sector Levies Amendment Bill
Ghana’s Parliament has passed the Energy Sector Levies (Amendment) Bill, 2026, approving changes to the country’s fuel levy and subsidy regime that the government says will reduce revenue leakages and strengthen financing for the energy sector.
The legislation amends the Energy Sector Levies Act, 2026 (Act 1135) by increasing the Energy Sector Shortfall and Debt Repayment Levy and the Road Fund Levy on fuel oil. It also replaces the current upfront fuel subsidy arrangement with a reimbursement system designed to improve accountability.
Under the new framework, eligible beneficiaries will pay the applicable levy at the point of purchase before applying for a refund, ending the previous system in which subsidies were provided in advance.
Defending the bill in Parliament on Friday, Finance Minister Dr Cassiel Ato Forson rejected opposition claims that the amendment introduces a new tax. He said the levies were already in force and that the changes relate only to how subsidies are administered.
According to the minister, the shift to an ex-post reimbursement model is intended to eliminate loopholes that have led to significant revenue losses and ensure that only qualified beneficiaries receive government support.
Dr Ato Forson argued that the reforms reflect modern tax administration, where governments continually adjust policies to address abuse and improve efficiency. He said tax laws must evolve to respond to changing economic conditions and attempts to exploit weaknesses in existing systems.
The finance minister also likened the changes to the government’s review of the Free Senior High School programme, arguing that policy reforms should not be mistaken for policy reversals but viewed as measures to strengthen existing programmes.
Government says the amendment will improve transparency in the administration of fuel subsidies, boost domestic revenue mobilisation and support efforts to reduce debt in the energy sector while safeguarding public funds from abuse.
The passage of the bill forms part of broader efforts to improve fiscal management and restore the financial sustainability of Ghana’s energy sector, which has accumulated significant debt over the years.
