The International Perspective for Policy and Governance (IPPG), a non-partisan public policy think tank, has raised serious concerns over the recent passage of the Energy Sector Levies (Amendment) Bill, 2025, which introduces a new GHS 1 Energy Sector Shortfall and Debt Recovery Levy (ESSDRL) per litre of fuel under the Energy Sector Levies Act (ESLA).

According to IPPG, the levy was passed without sufficient public consultation or transparent justification, undermining trust in the government’s policymaking process.

Limited Stakeholder Engagement Undermines Policy Legitimacy

IPPG criticized the swift approval of the levy, stating that there was inadequate engagement with key stakeholders—including the general public, civil society organizations, and industry groups. The think tank argued that inclusive policymaking is a cornerstone of good governance and sustainable development.

“The lack of transparency and stakeholder consultation in the passage of this levy erodes public confidence, even as fuel prices decline due to cedi appreciation,” said Seth Owusu-Mante, Research Fellow at IPPG.

The organization highlighted that the total tax and levy burden on petroleum products now exceeds 26% of the ex-pump price, a situation it described as excessive given the economic pressures already faced by citizens.

Inclusion of LPG Threatens Ghana’s Energy Transition Agenda

IPPG expressed particular concern over the inclusion of Liquefied Petroleum Gas (LPG) under the new levy, warning that it risks undermining Ghana’s clean energy goals. The think tank emphasized that the added cost could discourage LPG adoption, especially among low-income households, and reverse progress made in reducing reliance on traditional biomass fuels such as charcoal and firewood.

“This policy direction contradicts Ghana’s goal of achieving 50% LPG penetration by 2030 under the Cylinder Recirculation Model,” the think tank noted, adding that it may also hinder Ghana’s commitments under the Sustainable Development Goals (SDGs) and its Nationally Determined Contributions (NDCs).

Persistent Energy Sector Debt Raises ESLA Accountability Questions

Despite nearly a decade of ESLA implementation and significant revenue collection, IPPG observed that the energy sector remains financially unstable. The think tank attributed this to longstanding inefficiencies and weak governance, raising questions about the effectiveness of ESLA in addressing sectoral debt.

“After years of collecting levies under ESLA, the debt problem persists. This calls into question the transparency and accountability mechanisms tied to the use of these funds,” Mr. Owusu-Mante said.

Recommendations for Responsible Implementation

While acknowledging that the new levy is unlikely to be repealed, IPPG urged the government to ensure that its implementation is responsible, transparent, and aligned with long-term policy goals. It proposed the following actions:


  • Conduct a Regulatory Impact Assessment (RIA): Examine the socioeconomic implications of the levy on inflation, businesses, transport unions, LPG usage, and consumer welfare to guide mitigation strategies.


  • Introduce a Sunset Clause: Set a definitive expiration date for the levy, along with scheduled public reviews and reporting, to ensure accountability and prevent indefinite taxation.


  • Institutionalize Stakeholder Engagement: Establish a consistent process for involving citizens, industry stakeholders, and civil society in future energy sector policies and legislation.


  • Address Structural Inefficiencies: Prioritize eliminating waste, leakages, and inefficiencies within the energy sector as a more sustainable approach to reducing debt and improving sector performance.

IPPG concluded by reiterating that trust in public institutions is built not only through outcomes but also through transparent and inclusive processes.