Ghana’s Parliament has passed the highly contested Energy Sector Levies (Amendment) Bill, 2025, popularly referred to as the “Dumsor Levy” or “D-Levy”, into law. This legislative decision introduces a GH¢1 levy per litre on petrol and diesel purchased at the pump, with the stated objective of generating an estimated GH¢5.7 billion annually. The government insists that the funds will be ring-fenced for the procurement of fuel for electricity generation and the payment of arrears in the power sector. In the face of growing public concern about persistent power outages, commonly referred to as “dumsor”, the government has positioned the new levy as a strategic and necessary financial instrument to ensure stable energy delivery across the country.
The passage of the D-Levy law has not come without controversy. The legislative process was fraught with tension and partisan division, culminating in a walkout by the Minority Caucus in Parliament. The Minority MPs vehemently opposed the levy, describing it as an unnecessary tax burden on Ghanaians, who are already grappling with inflation, stagnant wages, and a rising cost of living. In a press briefing shortly after their exit from the chamber, the Minority Leader described the bill’s passage as “an assault on the economic dignity of the Ghanaian people,” further accusing the government of poor fiscal planning and repeated over-reliance on taxation as a solution to structural inefficiencies.
Despite the walkout, the Majority in Parliament used its numerical advantage to approve the bill. Finance Minister Dr. Cassiel Ato Forson defended the measure vigorously during his presentation, noting that the D-Levy is not just a tax, but a dedicated financial mechanism to address a long-standing national problem. Ghana’s energy sector is heavily dependent on thermal power plants, which require a constant supply of fuel, primarily light crude oil and natural gas, to function efficiently. Irregularities in fuel procurement, largely due to accumulated debt and underfunding, have led to periodic shutdowns of these plants, triggering widespread load shedding and damaging economic output.
The government argues that by ring-fencing revenue from the levy for energy-related use only, it will be able to ensure consistent fuel availability and bring a measure of predictability to power generation. Minister Forson explained that the GH¢1 per litre charge was carefully calculated to have minimal impact on pump prices, given recent macroeconomic stability, the relative strength of the Ghanaian cedi, and declining global oil prices. Nevertheless, oil marketing companies and market analysts have expressed concern that even marginal increases in fuel prices could have a cascading effect on transportation costs, food prices, and general inflation.
Public response to the new law has been deeply polarized. Some members of the business community, particularly in manufacturing and large-scale retail, have cautiously welcomed the levy, acknowledging the economic toll that erratic power supply has taken on productivity. The Association of Ghana Industries (AGI) issued a statement indicating conditional support for the policy. According to AGI President Dr. Humphrey Ayim-Darke, “The cost of unplanned outages, generator fuel, and lost man-hours far exceeds the marginal cost of a levy that can guarantee stable power. But we urge government to demonstrate fiscal discipline and transparency in managing this fund.”
Conversely, civil society organizations and grassroots movements have condemned the law, citing a lack of transparency and consultation. The Center for Democratic Accountability (CDA), an independent policy watchdog, criticized what it described as “taxation without engagement,” arguing that the government did not sufficiently engage the citizenry, industry stakeholders, or independent auditors before rolling out the legislation. In a strongly worded statement, CDA questioned the feasibility of the government’s ring-fencing assurances, pointing to past instances where energy levies were reallocated to other budget lines.
On social media platforms such as X (formerly Twitter) and Facebook, Ghanaians have voiced frustrations under trending hashtags like #ScrapTheDLevy and #NoToFuelTax. Many users argue that the measure reflects a government out of touch with the financial hardships facing ordinary people. Young professionals, students, and urban commuters have particularly expressed concern that the GH¢1 addition per litre, though modest on paper, would translate into significant monthly expenditure increases for households that rely on private transportation or ride-hailing services.
The Ghana Private Road Transport Union (GPRTU) has also expressed dissatisfaction with the new levy. In a press conference, a GPRTU spokesperson indicated that unless the government introduces subsidies or tax reliefs elsewhere, transport fares will inevitably rise to offset the increase in fuel costs. This could have broad implications for inflation and urban mobility, particularly in lower-income communities.
In response to these criticisms, the Ministry of Finance and the Energy Ministry have both pledged to establish an independent oversight mechanism to monitor the inflow and outflow of funds from the D-Levy. Government sources indicate that a bi-partisan board comprising civil society, private sector, and audit professionals will be tasked with monthly reporting on the utilization of D-Levy proceeds. The reports, it is claimed, will be made publicly accessible in a bid to restore confidence and ensure accountability.
Some energy policy experts have suggested that the D-Levy, if managed prudently, could be a transformative tool. Dr. Kwame Asante, an energy economist at the University of Ghana, has argued that predictable funding for fuel procurement could stabilize power generation in the short term, giving the country a window of opportunity to focus on longer-term structural reforms. “We can’t build a resilient energy economy overnight. But if this levy gives us the breathing space to avoid outages while pursuing grid modernization and renewable integration, then it has a strategic role,” he said in an interview on JoyNews.
Nonetheless, analysts warn that the levy cannot be a substitute for broader reforms in the energy sector. Ghana’s energy problems are not solely financial but are rooted in issues of poor planning, inefficiencies in the management of state-owned enterprises, underperformance of distribution companies, and lack of investment in renewables. Therefore, while the D-Levy might provide immediate relief, its success will depend on whether it is complemented by institutional reforms, improved governance, and long-term investment strategies.
With the law now in effect, Ghanaians await its implementation and the tangible outcomes promised by government. Will the lights stay on more consistently? Will industry productivity increase? Or will the D-Levy join the ranks of well-intended but poorly executed policies? Only time—and transparency, will tell.