Parliament has passed the Energy Sector Levies (Amendment) Bill, 2026 to increase the rate of the energy sector shortfall and debt repayment levy on fuel oil and the road fund levy on fuel oil.
Government says the Bill will help address significant leakages and abuses within government’s fuel subsidy programmes and stop a tax evasion scheme in the downstream petroleum sector.
Finance Minister, Dr. Cassiel Ato Forson, told Parliament some individuals purchase diesel, disguise it as fuel oil and collect taxes on it, blocking genuine industry players access to fuel oil to undertake their operations.
He said 25 million dollars has been lost in the first half year of 2026, warning that the country will lose one billion cedis each year if the leakages are not blocked.
“Some individuals are taking advantage and smuggling, buying fuel, buying diesel and disguising it as fuel oil and collecting the taxes on it. We will continue to give that tax exemption to industries. However, instead of ex-ante, this tax exemption will be ex-post,” he said.
Dr Forson explained that under the new arrangement, companies using fuel oil for industrial purposes would pay the applicable levies upfront at the point of importation and subsequently apply for refunds.
“You have to pay for it as industry and claim the refund. Fuel oil is not used by motorists; it’s used by industry,” he stated.
He assured that the amendment will not introduce a new tax on petroleum products.
“For emphasis, there will not be a tax increase on petroleum products. What we are saying is that we are equally going to amend the Revenue Administration Act to make the tax refund system relating to industries buying fuel oil move from 90 days to 14 days,” he added.
Please read the amendment here- Energy Sector Levies (Amendment) Bill, 2026:
