Ghana Parliament approves fuel levy amendment to curb subsidy abuse

Ghana’s Parliament passed the Energy Sector Levies (Amendment) Bill 2026, amending the 2025 Energy Sector Levies Act. The amendment raises the Energy Sector Shortfall and Debt Repayment Levy on fuel oil from GH¢0.24 to GH¢1.93 per litre, matching the rate applied to diesel and marine gas oil, and extends the Road Fund Levy to fuel oil.

Finance Minister Dr Cassiel Ato Forson said the change is intended to stop widespread abuse where diesel is disguised as fuel oil to claim industrial tax exemptions. Under the new rules, companies importing fuel oil for industrial use must pay the levy upfront and can apply for a refund, with the refund period reduced from 90 days to 14 days. The government estimates the abuse cost US$25 million in the first half of 2026 and warned of potential annual losses of about GH¢1 billion if the loopholes remain.

The minister emphasized that the amendment does not introduce a new tax on petroleum products but merely alters the procedure for granting tax exemptions to legitimate industrial users.