The Chamber of Oil Marketing Companies (COMAC) has taken note of the Government of Ghana’s amendment to the Energy Sector Levies Act, through the Energy Sector Levies (Amendment) Bill, 2025. We acknowledge the urgent need to address the nation’s growing energy sector debt; currently estimated to exceed US$3.1 billion, however the sharp increment in the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL) presents significant risks to the downstream petroleum industry players, consumer welfare, and the country’s energy transition ambitions.

It is important to recognize that petroleum products in Ghana are already subject to a substantial tax regime, comprising eight (8) distinct taxes and levies that cumulatively account for approximately 22% of the ex-pump price. These statutory taxes and levies support government expenditure and fund the operations of various regulatory institutions within the energy sector. Nevertheless, the anticipated increase under the Amendment Bill; applicable to petrol, diesel, LPG, naphtha, fuel oil, and marine gasoil, would raise the cumulative tax burden to a record 26% of the ex-pump price, placing additional strain on businesses of Oil Marketing Companies (OMCs), LPG Marketing Companies (LPGMCs) and consumers.