–BY Issah Olegor
In a significant policy retreat, the Ghana Revenue Authority (GRA) has postponed the implementation of the contentious energy levy hike that had been scheduled to take effect on June 16, 2025.
The decision comes in response to mounting pressure from stakeholders and a directive from the Ministry of Finance, signaling a rethink on government strategy to raise revenue from petroleum-related sources.
The levy in question—formally known as the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL)—was introduced under the Energy Sector Levies (Amendment) Act, 2025 (Act 1141). It forms part of efforts to recover debts accumulated in Ghana’s struggling energy sector, which continues to face financing gaps due to power generation shortfalls, also referred to in popular parlance as “dumsor.”
According to an internal memo dated June 13, 2025, and signed by the Commissioner-General of GRA, Anthony Kwasi Sarpong, the Authority has suspended the implementation of Tariff Interpretation Order (TIO) No. 2025/004, which would have increased fuel levies across selected petroleum products.
The decision affected fuel importers, marketers, and ultimately consumers, who were bracing for a new round of price hikes.
“This follows a directive from the Minister of Finance after consultations with stakeholders,” the statement from GRA read.
“Accordingly, the increase…which was to take effect from the 16th of June 2025, has been postponed. A new effective date will be communicated in due course.”
Background
The introduction of the revised levy had attracted widespread criticism from civil society groups, petroleum sector players, and opposition politicians.
Many argued that the timing of the policy was ill-conceived, given the country’s high cost of living, growing unemployment, and persistent economic uncertainty.
Critics warned that the proposed fuel price hikes could trigger inflationary pressure, raise transportation costs, and deepen the burden on households already battling utility tariff increases and sporadic electricity outages.
The ESSDRL is one of several mechanisms the government has deployed since 2016 to address the country’s ballooning energy sector debt, which currently exceeds $2 billion.
Though aimed at ensuring long-term sustainability in power supply and attracting private investment, the implementation of these levies has remained controversial due to transparency concerns and weak communication on their impact.
Internal and External Directives Issued
The GRA’s decision was communicated to all ports and customs stations, including key internal officers such as the Commissioner of Customs, heads of customs departments, and sector commanders.
Externally, notices were sent to key stakeholders including the National Petroleum Authority (NPA), Ghana Link Network Services, and the Association of Oil Marketing Companies (AOMCs).
The Ministry of Finance and relevant officials, including the Deputy Minister of Finance and the Director of Budget, were also formally notified.
Though the postponement is seen as a temporary reprieve, analysts caution that the underlying fiscal challenges remain.
The government is under increasing pressure to find alternative sources of revenue after securing a three-year Extended Credit Facility from the International Monetary Fund (IMF), which mandates fiscal consolidation and energy sector reform.
What Comes Next?
While no new date has been announced for the implementation of the revised levy, observers believe that the Ministry of Finance and GRA may return with a modified approach that either adjusts the levy structure or offers phased implementation to ease the impact on consumers.
