Parliament has passed a Bill amending the Energy Sector Levies Act, 2025 (Act 1135), introducing a significant increase in the Energy Sector Shortfall and Debt Repayment Levy on marine gas oil (MGO).

The adjustment raises the levy on MGO to GHp 193 per litre, a move aimed at addressing long-standing revenue leakages and improving accountability within Ghana’s downstream petroleum sector.

The government says the primary goal of the amendment is to clamp down on the rampant diversion and abuse of subsidised fuel, particularly MGO, which is designated for artisanal and commercial fishing activities. Investigations have revealed that illicit actors have been exploiting loopholes in the fuel subsidy programme, reaping profits from benefits meant to reduce operational costs for genuine fisherfolk.

“These leakages not only distort the subsidy’s impact on the fishing sector but also result in significant revenue losses to the state,” a government statement read.

To tackle this, the newly passed legislation forms part of broader reforms to enhance tax compliance, eliminate diversion, and improve targeting of subsidies within the petroleum industry.

A key part of the reforms is the removal of the price differential between marine gas oil and other diesel products, which the government says will discourage arbitrage and illegal reselling of subsidised fuel.

In place of the current subsidy structure, the government intends to roll out a targeted support system.

This system will deliver direct assistance to artisanal and commercial fisherfolk, ensuring that benefits reach legitimate players in the fishing industry without compromising national revenue.

The amendment to the Energy Sector Levies Act is expected to strengthen revenue mobilisation, curb illicit fuel trade, and protect the integrity of support systems designed for Ghana’s fishing communities.