Energy Levy raises GHc8.81bn as Sector spending surges to GHc22.67bn

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By Prince Antwi June 24, 2026

The Energy Sector Shortfall and Debt Repayment Levy generated GH¢8.81 billion in revenue during the 2025 fiscal year, according to a report presented to Parliament by Finance Minister, Cassiel Ato Forson.

The report, submitted on June 23, 2026, detailed how proceeds from the levy were channelled into the Energy Sector Support Account to address financial shortfalls and repay legacy debts within Ghana’s energy sector.

The levy, which imposes a GH¢1 charge per litre on selected petroleum products, was introduced to support fuel procurement for thermal power generation and help clear accumulated debts across the sector.

According to the report, the GH¢8.81 billion collected was supplemented by a carried-forward balance of GH¢1.26 billion, bringing the total funds available in the Energy Sector Support Account to GH¢10.07 billion in 2025.

Of this amount, GH¢9.82 billion was utilised during the year. The government allocated GH¢6.32 billion to address critical financial deficits within the energy sector, while GH¢3.52 billion was used to repay legacy debts in accordance with the provisions of Act 1135.

Following the disbursements, the account recorded a closing balance of GH¢252.23 million as of December 31, 2025.

Despite the substantial revenue generated through the levy, the funds were insufficient to cover the sector’s overall financial obligations for the year.

To bridge the gap, the Controller and Accountant-General’s Department transferred an additional GH¢12.85 billion from the Treasury Main Account.

As a result, total government spending on the energy sector in 2025 reached GH¢22.67 billion, combining resources from both the Energy Sector Support Account and the Treasury Main Account.

The management of the energy levy has consistently attracted scrutiny from civil society organisations and industry stakeholders, many of whom have called for greater transparency in the utilisation of petroleum tax revenues.

However, the government defended its stewardship of the funds in the report, arguing that the levy has played a crucial role in addressing sector deficits, supporting power generation and helping to maintain stability in electricity supply across the country.

The Finance Ministry maintained that the continued deployment of levy proceeds remains essential to sustaining operations within the energy sector and managing long-standing debt obligations.