Parliament has passed the Energy Sector Levies (Amendment) Bill, 2026, amending the Energy Sector Levies Act, 2025, to strengthen revenue mobilisation and curb abuses within the 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 rate applied to diesel and marine gas oil.
It also extends the Road Fund Levy to fuel oil.
According to the government, the changes are intended to plug significant leakages and prevent abuses in fuel subsidy programmes, particularly those aimed at supporting industries.
The government said some beneficiaries had exploited the subsidies for private gain, undermining the effectiveness and integrity of the system.
Explaining the amendment, Finance Minister Dr Cassiel Ato Forson said companies that use fuel oil would pay the applicable levies upfront at the point of importation but would later be eligible for refunds.
“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. Ex-ante simply put, that you get a tax exemption ahead, now you get the tax exemption ex-post. You have to pay for it as industry and claim the refund. Fuel oil is not used by motorists, it’s used by industry.
“And so, Mr. Speaker, for emphasis, there will not be a tax increase on petroleum product. 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 said.
