Professional services firm PwC has noted that while the revised Energy Sector Levies are expected to strengthen the government’s ability to stabilise power supply and reduce sector debt, they could also increase the financial burden on consumers.
In its commentary on the 2025 Mid-Year Budget Review, PwC highlighted that the levies particularly, the recent GH¢1 per litre increment on selected petroleum products, could drive up fuel prices, leading to higher transport costs and a potential spike in inflation.
The adjustment, approved under the Energy Sector Levies (Amendment) Act, 2025 (Act 11), pushed the revised ESLA budget from GH¢6.7 billion to GH¢9.6 billion. Notably, the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) component increased from GH¢5.7 billion to GH¢8.6 billion.
Provisional data shows that by mid-year, collections from the ESSDRL and related levies had reached approximately GH¢2.9 billion, indicating promising progress towards the revised revenue target. The full impact of the GH¢1 per litre levy is expected to be more evident in the second half of the year.
To balance revenue generation with consumer protection, PwC urged the government to closely monitor inflationary pressures, especially on transportation and low-income households. The firm also recommended exploring alternative funding sources to reduce long-term dependence on petroleum-based levies.