Energy Sector Levies Amendment Bill Passed; Fuel Oil Levy Rises To GH¢1.93 Per Litre
Parliament has passed the Energy Sector Levies (Amendment) Bill, 2026, introducing new measures aimed at strengthening revenue mobilisation, closing tax leakages and preventing abuse of fuel subsidy schemes.
The amendment revises the Energy Sector Levies Act, 2025, by increasing 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.
The legislation also extends the Road Fund Levy to fuel oil.
According to the government, the changes are designed to eliminate loopholes that have enabled some beneficiaries of fuel subsidy programmes, particularly industries, to exploit the system for private gain.
Presenting the amendment to Parliament, Finance Minister Dr Cassiel Ato Forson explained that industries using fuel oil would now be required to pay the applicable levies upfront when importing the product before claiming refunds afterward.
He said the move would help prevent fuel smuggling and tax fraud while preserving support for legitimate industrial users.
"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," Dr Forson said.
He explained that under the new arrangement, industries would no longer receive tax exemptions in advance but would instead pay the levies first and apply for refunds after meeting the necessary requirements.
"Ex-ante, simply put, you get a tax exemption ahead; now you get the tax exemption ex-post. You have to pay for it as an industry and claim the refund. Fuel oil is not used by motorists; it's used by industry," he stated.
Dr Forson further assured Parliament that the amendment does not introduce new taxes on petroleum products consumed by the public.
"And so, Mr Speaker, 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 moving from 90 days to 14 days," he added.
The government believes the revised framework will enhance transparency, protect public revenue and ensure that fuel subsidy incentives benefit only their intended industrial users.
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