The International Monetary Fund (IMF) has endorsed the Ghanaian government’s decision to raise the Energy Sector Levy on petroleum products, describing the move as a prudent step toward addressing fiscal and energy sector challenges.
The IMF believes the measure—set to generate additional revenue per litre of fuel—could significantly reduce Ghana’s energy sector debt and help stabilize the country’s fiscal position.
Speaking at a news conference in Washington, D.C., IMF Director of Communications Julie Kozack stated:
“This new measure will help generate additional resources to tackle challenges in Ghana’s energy sector. We also believe it will strengthen Ghana’s ability to manage fiscal pressures.”
Background
On Thursday, June 5, 2025, President John Mahama signed the Revised Energy Sector Levy (Amendment) Bill, 2025, into law following its passage in Parliament.
This authorized the Ghana Revenue Authority (GRA) to enforce the revised levy starting June 6. However, due to implementation concerns raised by the Chamber of Oil Marketing Companies (COMAC), the GRA postponed the rollout to July 16, 2025.
Under the revised structure, consumers will now pay GH¢1.96 per litre as the Energy Sector Shortfall and Debt Repayment Levy. This adjustment is expected to push the average pump price of petrol from GH¢11 to around GH¢13 per litre, according to COMAC estimates.
Update on Ghana’s IMF Programme
Ms. Kozack also announced that the IMF Executive Board is scheduled to consider Ghana’s Fourth Review under the Extended Credit Facility (ECF) arrangement in early July 2025.
If approved, the decision will trigger the disbursement of approximately US$370 million, bringing Ghana’s total receipts under the programme since May 2023 to US$2.355 billion.
Sources close to the Fund told JoyBusiness that the disbursement will be made directly to the Bank of Ghana’s account once the Board approves the review.
The IMF maintains that Ghana’s authorities have demonstrated renewed commitment in 2025 through bold reforms, including tighter monetary policy, energy price adjustments, and strengthened public financial management.
Credit: Joy Business
