The Minority in Parliament has condemned introduction of the GH¢1 Energy Sector Levy (Dumsor Levy) on petroleum products, describing it as draconian, hypocritical, and a betrayal of public trust.
The Caucus drew sharp comparisons between the controversial Electronic Transfer Levy (E-Levy) introduced by the previous administration and the newly imposed Energy Sector Levy – dubbed the ‘D-Levy’- arguing that the latter is more burdensome and unjustified.
Addressing a press conference in Parliament on Monday, the Ranking Member on the Energy Committee, Hon. George Kwame Aboagye, outlined several key differences between the two levies. According to him, the E-Levy was openly advertised in the national budget, followed by town hall meetings and extensive public consultations, whereas the D-Levy was ‘smuggled in at night without any transparency or stakeholder engagement.’ “Midnight robbery, pure and simple,” he asserted.
Hon. Aboagye noted that while the E-Levy charged 1% per transaction and exempted transfers below GH¢100, the D-Levy imposes an 8% tax on fuel purchases, with no exemptions for low-income earners.
“This levy has no minimum threshold. Even farmers fueling their tractors will pay. The poor are disproportionately affected,” he emphasized.
He stated that unlike the E-Levy, which only applied to voluntary electronic transactions, the D-Levy affects all Ghanaians by cascading into higher transportation costs and increased prices of essential goods.
“This is not just a fuel tax. It’s a tax on food, clothing, education, and healthcare—anything that is transported,” he warned.
The Ranking Member accused the ruling government of deceiving Ghanaians before the 2024 elections by vowing not to introduce new taxes to address energy sector debts.
“This government knew the true state of the energy sector and still promised not to impose new taxes. Now they’ve done exactly the opposite. This is a betrayal of the highest order,” he said.
He cited remarks made by Finance Minister Dr. Cassiel Ato Forson on March 11, 2025, in which he assured the public that no such levy would be imposed. “How can a party that claimed moral superiority in opposition now be sneaking tax bills through Parliament at midnight?” he questioned.
The Minority also pointed to inconsistencies in government communication regarding the purpose of the levy. While President Mahama claimed the funds would be used to pay down the energy sector’s arrears, Energy Minister John Jinapor later stated it was to finance the purchase of liquid fuels.
“So which is it? This conflicting messaging only deepens the public’s mistrust,” he stressed.
The caucus also questioned the feasibility of the levy achieving its stated goal. “How do you intend to pay off a US$3.1 billion debt with GH¢9 billion projected to be raised by December 2026?” he asked.
According to the Minority, the levy effectively adds GH¢4.50 per gallon of fuel, significantly inflating the cost of transportation and essential goods.
“This 8% levy is one of the highest single tax rates ever imposed. Even if it had a noble purpose, the rate is excessive and punitive. What has this government done to deserve to take 8% from the people?” Hon. Aboagye lamented.
He urged the government to immediately withdraw the D-Levy and consider more equitable alternatives to addressing energy sector debts. These include renegotiating power purchase agreements to eliminate off-book debts, enhancing operational efficiency at GRIDCo and ECG to reduce technical losses, and investing in renewable energy—specifically the additional 2,000MW of solar power promised in the NPP’s 2024 manifesto.
Hon. Aboagye reaffirmed the Minority’s commitment to resisting the levy through advocacy and solidarity with civil society organizations, driver unions, and other stakeholders.
“We will stand with the driver unions and the chamber of oil marketing companies. We will not allow this levy to pass quietly. Ghanaians deserve transparency, honesty, and fairness,” he declared.
