The recent introduction and subsequent suspension of the GH¢1 “Dumsor Levy” on every liter of petroleum purchased has ignited fierce debate across Ghana. Passed by Parliament on June 3, 2025, under the Energy Sector Levy (Amendment) Bill, the levy aimed to raise funds to address the country’s mounting energy sector debts and, ostensibly, to help end the persistent power outages known as “dumsor”.
Public Backlash and Economic Realities
Public reaction was swift and overwhelmingly negative. Many Ghanaians saw the levy as yet another tax in a time of already high living costs, drawing uncomfortable parallels to the much-maligned Electronic Transfer Levy (E-Levy) of the previous administration1. Critics, including the Minority in Parliament, denounced the Dumsor Levy as economically reckless and morally indefensible, arguing that it would further burden citizens already grappling with soaring fuel and transportation costs.
Government’s Justification and Suspension
The government defended the levy as a necessary measure to stabilize the energy sector and pay off legacy debts, with a target of raising GH¢5.7 billion to chip away at a $3.1 billion energy sector debt. However, following a surge in global oil prices and mounting public pressure, the Ghana Revenue Authority announced an indefinite suspension of the levy’s implementation, pending further stakeholder consultations.
A Policy in Limbo
The Minority Caucus has called for a complete repeal rather than a mere postponement, labeling the government’s handling of the issue as chaotic and inconsistent. They argue that operational inefficiencies and mismanagement—not a lack of new taxes—are at the heart of Ghana’s power challenges.
Conclusion
The GH¢1 Dumsor Levy highlights a fundamental tension in Ghanaian economic policy: the urgent need to fund critical infrastructure versus the imperative to shield citizens from further financial strain. While the energy sector’s woes are real, any solution must be transparent, equitable, and developed with genuine stakeholder engagement. As it stands, the Dumsor Levy appears less a strategic fix and more a symbol of policy uncertainty—one that Ghanaians, for now, have soundly rejected.