The Institute of Climate and Environmental Governance (ICEG) has strongly condemned the Energy Sector Levy (Amendment) Bill, 2025, urging Parliament to reject what it labels a “regressive, unjust, and deeply unfair” initiative to impose a GH¢1 charge on every litre of petroleum product purchased.
In a statement issued on Tuesday, June 4, ICEG voiced its significant dissatisfaction with the bill, which is currently under urgent consideration by Parliament.
The purpose of the bill is to generate extra revenue to address Ghana’s energy sector debt and enhance power supply. However, ICEG contends that this approach unfairly places an additional burden on ordinary Ghanaians who are already grappling with a 14.75% increase in electricity tariffs.
“This action is unjust and profoundly unfair to Ghanaians,” stated Kwesi Yamoah Abaidoo, Policy Lead for Climate Finance and Energy Transition at ICEG.
“While it is commendable to address our debts for the sake of energy sustainability, it should not come at the cost of the citizens.”
ICEG maintains that the issues plaguing the energy sector — including poor power purchase agreements, mismanagement, and excessive subsidies — are a result of inadequate leadership, not the average Ghanaian.
“The levy will lead to increased fuel prices, which will negatively impact transportation, food costs, and inflation,” Abaidoo cautioned. “This will only exacerbate poverty and heighten inequality, particularly among low-income families.”
The organization is advocating for a complete reevaluation of how Ghana tackles its energy challenges. Among its suggestions, ICEG calls on the government to renegotiate power purchase agreements, reform the operations of ECG, and encourage the use of renewable energy.
Additionally, it has demanded transparency in the management of energy funds, advocating for an independent audit of all ESLA receipts and expenditures since 2015, as well as the creation of an independent Energy Sector Stabilization Authority.
“The government must embark on a broader initiative to address these issues effectively.”
Source: HotFmOnline.com
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