Government Injects GH¢12.9 Billion as One-Cedi Fuel Levy Fails to Cover Energy Sector Costs
Government tops up energy sector funding with GH¢12.85 billion after fuel levy revenue covers less than half of 2025 obligations.
- The One-Cedi Fuel Levy generated GH¢8.81 billion in 2025, while energy sector obligations reached GH¢22.67 billion.
- Government injected an additional GH¢12.85 billion from the Treasury Main Account to bridge the funding gap.
- GH¢11.48 billion was spent on energy sector shortfalls and GH¢11.19 billion on legacy debt repayments.
The government was forced to inject an additional GH¢12.85 billion into the energy sector in 2025 after revenue generated from the Energy Sector Shortfall and Debt Repayment Levy (ESSDRL), popularly known as the One-Cedi Fuel Levy, fell far short of the sector’s financial obligations.
According to the 2025 Annual Report on the Management of the Energy Sector Support Account, submitted to Parliament by the Ministry of Finance, the levy generated GH¢8.81 billion during the year. However, total spending on energy sector shortfalls and legacy debt repayments amounted to GH¢22.67 billion, leaving a significant financing gap.
Actual collections from the ESSDRL reached GH¢8.66 billion, surpassing the revised target of GH¢8.62 billion by GH¢39.88 million. Total deposits into the Energy Sector Support Account stood at GH¢8.81 billion. Combined with funds carried forward from 2024, the account had GH¢10.07 billion available for use.
Despite this, expenditures more than doubled available resources. Of the GH¢22.67 billion spent, GH¢11.48 billion went toward addressing energy sector payment shortfalls, while GH¢11.19 billion was used to service legacy debts.
The report noted that revenue from the levy was insufficient to meet the sector’s obligations for the year. As a result, the Controller and Accountant-General’s Department transferred GH¢12.85 billion from the Treasury Main Account to bridge the gap.
The Treasury support included GH¢5.16 billion for energy sector shortfalls and GH¢7.69 billion for legacy debt repayments.
The Ministry attributed the levy’s strong revenue performance to increased petroleum product consumption driven by higher economic activity, stable fuel prices, and government measures aimed at reducing fuel diversion.
The ESSDRL was introduced under the Energy Sector Levies Act, 2025 (Act 1135), which consolidated several petroleum-related levies into a single charge designed to address persistent payment shortfalls and reduce accumulated debts in the energy sector. In 2025, the government increased the levy by GH¢1 per litre on selected petroleum products to boost revenue generation.
However, the report concluded that despite the substantial funds raised through the levy, additional government financing remains necessary to tackle longstanding debts and ongoing funding challenges within the energy sector.
At the close of 2025, the Energy Sector Support Account recorded a balance of GH¢252.23 million.
