The International Monetary Fund (IMF) has endorsed Ghana’s new Energy Sector Shortfall and Debt Repayment Levy, describing it as a strategic step toward achieving the country’s fiscal consolidation goals under the Extended Credit Facility (ECF) programme.

The levy, which imposes a GH¢1 charge per litre of petroleum products, is intended to address persistent debt and financial shortfalls in the energy sector, a long-standing issue that has strained public finances and affected service delivery.

Speaking at a press briefing, Julie Kozack, Director of the IMF’s Communications Department, said the measure is expected to play a pivotal role in Ghana’s ongoing reform efforts.

“This is a new measure that will help generate additional resources to tackle the challenges in Ghana’s energy sector. It will also bolster Ghana’s ability to deliver on the fiscal objectives under the programme,” Kozack stated.

Despite the IMF’s backing, the levy has met strong opposition from the Minority in Parliament, who argue it will deepen the financial burden on already struggling consumers.

In response, the government maintains that the consumer impact will be minimal, citing current fuel prices at the pump as being significantly lower than during past inflationary spikes.

To ease the rollout, the implementation date has been pushed from June 9 to June 16, 2025, following consultations between the government and the Chamber of Oil Marketing Companies.

In the interim, stakeholders in the energy sector including the Chamber of Petroleum Consumers, are urging the government to use the grace period to enhance stakeholder engagement and ensure greater transparency in the application and monitoring of levy proceeds.