One-Cedi fuel levy raised GHc8.81bn in 2025 but fell short of Energy Sector needs – Report

The Energy Sector Shortfall and Debt Repayment Levy (ESSDRL), commonly referred to as the One-Cedi Fuel Levy, generated GH¢8.81 billion in 2025 but was insufficient to cover even half of the government’s total energy sector obligations for the year.

This was contained in the 2025 Annual Report on the Management of the Energy Sector Support Account submitted to Parliament by the Ministry of Finance.

According to the report, total government spending on energy sector shortfalls and legacy debt repayments reached GH¢22.67 billion in 2025, meaning the levy alone could not fully finance the sector’s obligations.

The report indicated that an additional GH¢12.85 billion had to be drawn from the Treasury Main Account to bridge the financing gap.

Of the total expenditure, GH¢11.48 billion was used to address energy sector shortfalls, while GH¢11.19 billion went into settling legacy debts.

Actual collections from the levy stood at GH¢8.66 billion, slightly above the revised target of GH¢8.62 billion, exceeding expectations by GH¢39.88 million. Total lodgements into the Energy Sector Support Account ultimately reached GH¢8.81 billion.

Including a carryover balance from 2024, the account had GH¢10.07 billion available for use in 2025.

However, this amount remained far below the sector’s total financial needs, resulting in heavy reliance on Treasury support.

The Controller and Accountant-General’s Department provided GH¢12.85 billion from the Treasury Main Account, comprising GH¢5.16 billion for shortfall payments and GH¢7.69 billion for legacy debt settlements.

The report attributed the strong performance of the levy to increased petroleum consumption driven by higher economic activity, stable fuel prices and improved enforcement measures that reduced diversion of petroleum products.

The ESSDRL, introduced under the Energy Sector Levies Act, 2025 (Act 1135), consolidated multiple petroleum-related charges into a single levy aimed at addressing energy sector financing gaps and reducing accumulated debt.

Despite the revenue gains, the report concluded that the scale of Ghana’s energy sector liabilities continues to require substantial government budgetary support.

At the end of 2025, the Energy Sector Support Account recorded a closing balance of GH¢252.23 million.

Prince Antwi

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