Parliament passes bill to scrap Marine Gas Oil subsidy and raise energy levy
Parliament has approved the Energy Sector Levies (Amendment No. 2) Bill, 2025, effectively removing the government subsidy on marine gas oil and increasing the Energy Sector Shortfall and Debt Repayment Levy by 193 pesewas per litre on the product.
The government says the decision is aimed at curbing widespread abuse and smuggling linked to the marine gas oil subsidy, which has, over time, compromised the integrity and fairness of the support programme.
The amended levy is projected to generate an estimated GH¢71 million in additional revenue for the state. These funds are expected to support ongoing efforts to reduce energy sector debts and address financial shortfalls within the industry.
During deliberations in Parliament, Deputy Finance Minister Thomas Nyarko Ampem clarified that the removal of the subsidy applies exclusively to marine gas oil and does not extend to premix fuel.
He assured that artisanal fishers will continue to receive uninterrupted access to premix fuel supplies.
The move forms part of the government’s broader strategy to streamline subsidies, enhance revenue mobilisation, and ensure more efficient resource allocation in the energy sector.
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