Finance Minister Dr. Cassiel Ato Forson has ignited a debate in Parliament with the urgent introduction of the Energy Sector Levy Amendment Bill, which aims to impose new taxes on petroleum products.
If the bill is approved, it will introduce additional taxes on all petroleum products. Dr. Forson argues that this measure is essential to address a concerning energy debt of US$3.1 billion projected by the end of March 2025.
Importantly, Dr. Ato Forson reassured Parliament on June 3 that consumers would not feel the immediate effects at the fuel pumps, crediting this relief to the strong performance of the Ghana Cedi.
The Minister elaborated on the troubling financial condition of the energy sector, disclosing that the US$3.1 billion debt encompasses substantial arrears owed to Independent Power Producers (IPPs), various State-Owned Enterprises (SOEs), and essential fuel suppliers.
He pointed out that a significant factor contributing to this crisis was the failure to pay bills to major power providers such as ENI and Karpowership.
This situation resulted in the complete depletion of a US$512 million World Bank IDA guarantee and a US$120 million GNPC guarantee in 2024, leaving the government in dire need of an extra US$632 million to reinstate these crucial guarantees.
“To generate additional revenue to meet the demands of the power sector, the government is suggesting an increase in the ex-pump price of petrol, diesel, and related products,” Dr. Forson declared before Parliament.
Source: HotFmOnline.com
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