New Fuel Levy Sparks Backlash as Critics Accuse Mahama Administration of Betraying Tax Promises

The recently introduced GH¢1 fuel levy, aimed at addressing Ghana’s energy sector debts, has ignited sharp criticism from civil society leaders, opposition figures, and former government officials, who say the tax places an unfair burden on citizens while failing to tackle systemic inefficiencies.

Executive Director of the Media Foundation for West Africa (MFWA), Sulemana Braimah, is among those voicing strong opposition. In a post on his X (formerly Twitter) page, Braimah urged the government to shift its focus from taxation to curbing corruption and inefficiencies in the energy sector.

“Resetting Ghana shouldn’t be about new taxes to continue to enrich elite looters. It should be about curbing the waste and looting in all sectors,” he wrote. “If you know very well about the looting and waste at NPA, why such a new levy? The scandal at NPA is far bigger than the NSS scandal.”

His comments reflect growing public frustration following the passage of the Energy Sector Levy (Amendment) Bill, 2025, under a certificate of urgency by Parliament on June 3. The bill imposes a GH¢1 per litre levy on petroleum products, expected to raise GH¢5.7 billion annually to support debt repayment and fuel procurement for thermal energy.

According to Finance Minister Dr. Cassiel Ato Forson, the energy sector’s debt stood at US$3.1 billion as of March 2025, and a further US$3.7 billion is required to clear the arrears, with US$1.2 billion needed to secure adequate fuel for the year.

Dr. Forson assured Parliament that the levy’s impact would be neutralized by the strong performance of the Ghana Cedi, promising no immediate fuel price hikes. But his assurance has done little to calm critics.

Former Vice President and 2024 NPP presidential candidate Dr. Mahamudu Bawumia has slammed the new levy, calling it a betrayal of campaign promises. “They said no new taxes, but now we have a ‘dumsor levy’—this is eight times the E-Levy,” Bawumia said while addressing NPP supporters in the Central Region. “If you buy fuel for GHC 1,000, you will now pay GHC 83 as a dumsor levy. Just prepare—there’s more to come.”

Former Finance Minister Dr. Mohammed Amin Adam echoed the sentiment in Parliament, arguing that the government’s claim of tax relief was misleading. “They celebrated abolishing taxes, but now they are introducing new ones that will bring in more than GH¢5 billion,” he said. “They’re giving with the left and taking with the right—and even dipping into your pocket.”

Minority Leader Alexander Afenyo-Markin also joined the criticism, accusing the Mahama-led administration of backtracking on its 2025 budget pledge. “You told Ghanaians there would be no new taxes. Now, you repeal the E-Levy only to bring it back under another name,” he said in Parliament.

While government supporters argue that the levy is essential to stabilizing the energy sector and ensuring reliable power supply, the debate has reignited tensions around fiscal policy, governance, and transparency.

For many, the issue is not just about the tax itself, but about broken promises, perceived mismanagement, and a lack of accountability in how public funds are handled.

As the levy takes effect, the Mahama administration faces mounting pressure to prove that this revenue will be used efficiently and transparently—and not lost to the very “waste and looting” its critics have condemned.