IMF Backs Ghana’s GH¢1 Fuel Levy Hike to Rescue Energy Sector and Stabilize Economy

/ Ghana's new fuel tax gains international approval as the IMF applauds its role in powering fiscal recovery and clearing GH¢39 billion in energy debt.

০ IMF endorses Ghana’s GH¢1 per litre fuel levy, calling it a crucial fiscal move under the ECF programme.

০ The tax aims to clear $3.1 billion energy sector debt and finance power supply procurement.

০ Implementation date moved to June 16 after industry-led protests delayed the original rollout.

 

The IMF supports Ghana’s GH¢1 fuel levy increase, citing its potential to restore energy
sector balance and growth.

In a significant boost to Ghana’s fiscal reform efforts, the International Monetary Fund (IMF) has officially endorsed the government’s GH¢1 increase per litre on fuel products, set to take effect from June 16, 2025.

Julie Kozack, Director of Communications at the IMF, confirmed the Fund’s support during a press briefing, describing the levy as strategic and necessary to meet Ghana’s economic recovery targets under the Extended Credit Facility (ECF) programme.

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

The fuel tax is expected to raise crucial revenue to help address Ghana’s staggering $3.1 billion energy sector debt, while enabling continuous thermal power generation, which the government says is vital for national productivity and economic stability.

Finance Minister Cassiel Ato Forson echoed this during the Parliamentary debate on the Energy Sector Levy (Amendment) Bill, 2025, stating that the tax increase is critical to clearing arrears and financing power procurement.

Originally planned for June 9, the levy’s rollout was delayed following opposition from the Chamber of Oil Marketing Companies, who raised concerns over implementation logistics and public backlash.

READ ALSO: Ghana to See 9% Fuel Price Reduction as Cedi Strengthens – ASEC Forecasts

Despite this, the government is moving forward, citing strong international backing and domestic urgency.

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