The National Democratic Congress (NDC) government’s abrupt suspension of the controversial Energy Sector Levy (Amendment) Act, 2025 — popularly known
The National Democratic Congress (NDC) government’s abrupt suspension of the controversial Energy Sector Levy (Amendment) Act, 2025 — popularly known as the Dumsor Levy — has ignited a political storm in Ghana, with the Minority in Parliament accusing the administration of inconsistency, hypocrisy, and poor economic planning.
Just three days before its scheduled implementation, the Ghana Revenue Authority (GRA) issued a notice halting the rollout of the new fuel tax, citing geopolitical instability, global crude price volatility, and the need to protect Ghanaian consumers from further economic hardship.
The levy was to add GH₵1 to every litre of petrol and diesel, and 20 pesewas to a kilogram of liquefied petroleum gas (LPG).
Its stated aim was to generate over GHC5.7billion revenue to offset long-standing debts in the energy sector and support infrastructure investments.
Global Conflict
According to the Ministry of Energy and Green Transition, the sudden U-turn is directly linked to rising global oil prices, caused in part by renewed hostilities between Israel and Iran.
In a media interview on Saturday, June 14, Ministry Spokesperson Richmond Rockson said the international crude market had seen sharp increases, jumping from $60 to $74 per barrel within days — the highest spike in five months.
“In response to this international oil price surge and to avoid pushing more pressure on Ghanaians at the pump, the government has decided to delay the implementation of the levy,” Rockson explained.
He added that this decision aligns with President John Mahama’s broader directive to closely monitor external developments that could impact Ghana’s economy, especially petroleum pricing.
“From February to now, we’ve made gains by stabilising the cedi and bringing fuel prices down to between GH₵11 and GH₵12 from GH₵17,” Rockson added.
“We don’t want to reverse that progress with hasty policy implementation.”
President Mahama Cites War as Economic Threat
Speaking during his Thank-You Tour of the Savannah Region last week, President Mahama expressed concern about the worsening Israel-Iran crisis and its potential knock-on effect on Ghana’s economy.
He said that while the government had made progress in stabilizing the economy since taking office in January, external shocks like geopolitical conflict remain a serious threat.
“I have asked the Ministers of Finance and Energy to monitor this conflict closely and model its impact on Ghana’s fuel prices and broader economy,” President Mahama said.
“We must protect the economic gains we’ve made over the past six months.”
Minority Fumes: Admission of Failure
But the Minority in Parliament, led by Alexander Afenyo-Markin, has not accepted the government’s explanation.
In a sharply critical statement issued Saturday night, the Minority accused the government of policy inconsistency and economic mismanagement.
“This suspension is not a strategic move — it is a humiliating climb down,” Afenyo-Markin said.
“You don’t rush to pass a law, announce its implementation, and then abruptly suspend it days before it takes effect unless you had no plan to begin with.”
He labeled the levy as ill-conceived and argued that its suspension is an open admission that the NDC administration is struggling to manage the economy — particularly the energy sector — without overburdening citizens.
Afenyo-Markin also accused the NDC of practicing double standards.
He recalled that while in opposition, the NDC had mocked the previous NPP government for citing COVID-19 and the Russia-Ukraine war as reasons for economic difficulties. Now in power, the NDC is using a similar excuse.
“This is the same party that ridiculed President Akufo-Addo for blaming external factors,” he said. “Now, less than six months into their own administration, they’re blaming Iran and Israel. The hypocrisy is astonishing.”
Demand for Full Repeal
The Minority isn’t just calling the suspension a mistake — they’re demanding a full repeal of the Energy Sector Levies Act.
Afenyo-Markin argued that it is morally wrong to impose more taxes on fuel at a time when Ghanaians are already battling inflation, high utility tariffs, and rising food prices.
“It is economically reckless and socially unjust to tax fuel in this current climate. If the government truly cared about the welfare of the people, they would repeal this levy immediately — not just suspend it,” he said.
Broader Problems
Beyond the tax issue, the Minority also pointed to deeper structural problems within the energy sector.
Afenyo-Markin cited poor leadership at the Electricity Company of Ghana (ECG), the failure to replace expired prepaid meters, delays in procuring new metering infrastructure, and the stalling of the Loss Reduction Programme, which was meant to modernize Ghana’s outdated power grid.
He noted that multiple companies had submitted proposals to supply meters and help reduce illegal electricity consumption, but the government had yet to act.
“The sector is leaking, and instead of fixing the holes, this government wants to patch the debt by taxing ordinary Ghanaians. It’s unacceptable,” Afenyo-Markin said.
Parliamentary Oversight Demanded
The Minority Leader called on the Minister for Energy and Green Transition to appear before Parliament with detailed documentation on the levy’s framework, intended use of revenue, and a full report on the current state of the energy sector.
He stressed the need for transparent policymaking and legislative oversight in all major economic decisions affecting the public.
Final Warning to Government
Afenyo-Markin ended his statement with a passionate plea for the complete abolition of the Dumsor Levy, framing the issue as one of national interest rather than partisan politics.
“Ghanaians need light, not new taxes. We reject any attempt to turn the power crisis into a tax collection opportunity. If this levy survives, it will open the floodgates for even more punitive taxes,” he warned.
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