The Government of Ghana has introduced a proposal for a new fuel-based tax measure, known as the “Dumsor Levy” or D-Levy, as part of its efforts to confront the nation’s longstanding energy crisis. The proposed tax, currently under parliamentary consideration, would impose a GH¢1 charge per liter on petrol and diesel sold at the pump. According to the government, the revenue from this levy will be dedicated exclusively to the procurement of fuel for electricity generation, a critical factor in addressing the country’s persistent power shortages. The D-Levy was formally presented to Parliament on June 3, 2025, by the Minister of Finance, Dr. Cassiel Ato Forson, who described the measure as an “urgent and necessary intervention” to ensure a sustainable and consistent power supply in Ghana. The issue of erratic electricity, commonly referred to by the Twi term “dumsor,” meaning on-and-off, has plagued the country for more than a decade. Despite various infrastructure upgrades and policy reforms over the years, power outages continue to severely impact both domestic life and economic productivity.
Dr. Forson emphasized that this new levy is not merely another revenue-generating tax but a targeted, ring-fenced policy tool designed to address one of the most critical bottlenecks in the energy sector: fuel availability for thermal plants. He argued that without a reliable and dedicated funding mechanism to procure fuel, thermal generation becomes sporadic, exacerbating outages and undermining economic growth. In recent years, Ghana’s power generation mix has remained heavily reliant on thermal plants, which account for over 60% of the electricity supply, particularly during peak demand periods. Inconsistent fuel supply to these facilities, largely due to financial constraints, has often led to sudden outages and unplanned load shedding schedules.
The proposal for the D-Levy comes just two months after the government abolished the controversial Electronic Transfer Levy (E-Levy), which had also faced significant backlash from the public and opposition groups. The repeal of the E-Levy created a gap in government revenue streams, especially those allocated to infrastructure and energy development. The Ministry of Finance has framed the D-Levy as a more direct, outcome-based alternative. By dedicating proceeds solely to fuel procurement for electricity generation, the government hopes to build trust and demonstrate fiscal responsibility, even in the face of widespread skepticism.
In his parliamentary submission, Majority Leader Mahama Ayariga lent his support to the measure, noting that consistent electricity supply is a prerequisite for industrial growth, job creation, and macroeconomic stability. “The D-Levy is not an additional tax for the sake of taxation. It is a patriotic policy choice,” he said. “Without reliable electricity, our SMEs, factories, and even essential services like hospitals are left vulnerable. If we must pay a little more at the pump to ensure the lights stay on, then that is a sacrifice worth making.”
In defense of the policy’s affordability, Dr. Forson assured Ghanaians that the levy would not lead to an immediate increase in pump prices. This, he said, is due to the recent strengthening of the Ghanaian cedi against major international currencies, as well as stable global fuel prices. Nonetheless, fuel dealers and oil marketing companies have warned that market volatility could still make the impact of the levy more visible in the months ahead.
The announcement of the D-Levy has triggered mixed reactions across the country. On one hand, a number of business leaders and energy sector experts have endorsed the levy as a practical and necessary intervention. The Association of Ghana Industries (AGI) has acknowledged that while any new charge is bound to be met with resistance, the long-term benefits of reliable power far outweigh the cost implications of the levy. The AGI President, Dr. Humphrey Ayim-Darke, remarked that businesses are losing millions of cedis monthly to unplanned power outages. “A GH¢1 levy per litre may seem burdensome in the short term, but it is significantly cheaper than the cost of operating generators or halting production due to outages,” he stated.
However, many Ghanaians remain unconvinced. Civil society organizations and grassroots advocacy groups have raised legitimate concerns about the sustainability, governance, and transparency of such a policy. The Center for Social Equity and Accountability (CENSEA), in a statement released shortly after the bill’s tabling, questioned the government’s prioritization and credibility in the management of public funds. “There is no guarantee that this fund will not be misappropriated, as we have seen with previous energy sector interventions. Citizens deserve a more robust accountability framework before being asked to pay more,” the statement read.
Opposition parties have also voiced strong objections to the levy, accusing the government of fiscal mismanagement and shifting the burden of inefficiency onto ordinary citizens. Critics argue that instead of introducing new taxes, the government should focus on plugging leakages in public expenditure, improving the efficiency of state-owned utilities, and accelerating renewable energy integration. On social media, the discourse has been particularly intense, with the hashtag #ScrapTheDLevy trending within hours of the announcement. Many users, especially young people and urban commuters, expressed frustration over the rising cost of living and growing skepticism toward the promises of public officials.
In response to the backlash, members of Parliament’s Energy Committee have suggested several amendments to the bill, including the establishment of an independent oversight board to monitor the collection and utilization of D-Levy funds. Some lawmakers have also recommended the inclusion of a sunset clause in the legislation, whereby the levy would be automatically reviewed or phased out after a set period based on performance benchmarks. Analysts have emphasized that the success or failure of the D-Levy will depend largely on its implementation framework. Transparency, accountability, and visible outcomes will be key to building public trust. If managed well, the D-Levy could serve as a model for performance-based levies in other critical sectors. However, if it falls into the familiar pattern of mismanagement and opacity, it risks becoming another source of citizen disillusionment and political instability.
The government now faces the dual challenge of passing the bill through Parliament and winning the confidence of the people it aims to serve. As debates continue and committee reviews progress, the question remains whether the D-Levy will mark a turning point in Ghana’s energy sector or simply add to the burdens of a population already grappling with economic strain.