- IMF backs Ghana’s new energy sector levy as part of its fiscal reform under the ECF programme
- GH¢1 per litre levy aims to address debt and financial gaps in the energy sector
- Julie Kozack emphasizes the levy’s role in tackling structural issues and raising revenue
The International Monetary Fund (IMF) has backed Ghana’s Energy Sector Shortfall and Debt Repayment Levy, calling it a strategic initiative that aligns with the country’s fiscal objectives under the Extended Credit Facility (ECF) programme.
The levy imposes a GH¢1 fee per litre on petroleum products and is designed to address persistent financial deficits and debt within the energy sector.
During a press briefing, Julie Kozack, Director of the IMF’s Communications Department, highlighted the importance of the measure, stating that it would be instrumental in resolving structural challenges in the energy sector while also supporting broader fiscal reforms.
“With regard to the fuel levy, this is a new initiative intended to raise additional revenue to address Ghana’s energy sector issues. It will also strengthen the country’s ability to meet the fiscal targets set out under the programme,” she said.
The levy has faced opposition from the Minority in Parliament, who argue it increases the financial burden on consumers already under strain. However, the government maintains that the effect on consumers will be minimal, noting that fuel prices remain below levels seen during previous periods of high inflation.
Following an agreement between the government and the Chamber of Oil Marketing Companies, the implementation of the levy has been postponed from June 9 to June 16, 2025.
In the interim, energy sector stakeholders, including the Chamber of Petroleum Consumers, are calling on the government to use the delay to enhance dialogue with affected groups and improve transparency regarding the levy’s application.
