Parliament has passed the Energy Sector Levies (Amendment) Bill, 2026, amending the Energy Sector Levies Act, 2025, as part of government efforts to strengthen revenue mobilisation and eliminate abuse within Ghana’s fuel subsidy regime.
The amendment raises the Energy Sector Shortfall and Debt Repayment Levy on fuel oil from GH¢0.24 per litre to GH¢1.93 per litre, bringing it in line with the levy charged on diesel and marine gas oil. It also extends the Road Fund Levy to fuel oil.
Government says the changes are intended to close major revenue leakages and tackle tax evasion schemes that have undermined the country’s fuel subsidy programme, which is designed to support industrial users.
Presenting the amendment in Parliament, Finance Minister Dr Cassiel Ato Forson said authorities had identified widespread abuse involving the misclassification of diesel as fuel oil to benefit from tax exemptions.
“Some individuals are taking advantage and smuggling, buying fuel, buying diesel and disguising it as fuel oil and collecting the taxes on it. We will continue to give that tax exemption to industries. However, instead of ex-ante, this tax exemption will be ex-post,” he said.
Dr Forson explained that under the new arrangement, industries that import fuel oil will pay the applicable levies upfront before applying for refunds, replacing the current system of granting tax exemptions before payment.
“You have to pay for it as industry and claim the refund. Fuel oil is not used by motorists; it’s used by industry,” he stated.
The Finance Minister stressed that the amendment does not introduce any new taxes on petroleum products but instead changes the process through which industries receive their tax exemptions.
“For emphasis, there will not be a tax increase on petroleum products. What we are saying is that we are equally going to amend the Revenue Administration Act to make the tax refund system relating to industries buying fuel oil move from 90 days to 14 days,” he added.
According to Dr Forson, Ghana lost an estimated US$25 million during the first half of 2026 as a result of abuses within the fuel subsidy regime. He warned that the country could forfeit nearly GH¢1 billion annually if the loopholes are not addressed.
Government believes the amendment will help protect public revenue, improve accountability within the downstream petroleum sector and ensure that fuel subsidies are accessed only by legitimate industrial users.
