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    Home»Business»Energy Sector Levies will enhance power supply but threaten inflation, transport fares
    Business

    Energy Sector Levies will enhance power supply but threaten inflation, transport fares

    ZamZam UpdateBy ZamZam UpdateJuly 30, 2025No Comments2 Mins Read
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    Skilled companies agency, PwC, has said that although the Power Sector Levies is anticipated to reinforce the federal government’s capability to stabilise energy provide and cut back the ability sector debt, it additionally locations added strain on customers.

    The strain on the customers, it mentioned in its commentary on the 2025 Mid-12 months Finances Overview, will come by greater gasoline costs, probably affecting transport prices and inflation.

    The Power Sector Levies (Modification) Act, 2025 (Act 11), led to Parliament approving a further GH¢1 per litre on chosen petroleum merchandise.

    This adjustment led to a major leap within the revised ESLA finances—from GH¢6.7 billion to GH¢9.6 billion—with the Power Sector Shortfall and Debt Compensation Levy (ESSDRL) element rising from GH¢5.7 billion to GH¢8.6 billion.

    As of mid-year, provisional collections from the ESSDRL and associated levies amounted to roughly GH¢2.9 billion, indicating a robust begin towards the revised income goal, and noting the anticipated full impression of the newly launched GHS1 per litre tax for the second half.

    To make sure the effectiveness of the ESSDRL whereas minimising its adversarial results, PwC beneficial that the federal government intently displays inflationary impacts, notably on transport and weak households.

    Moreover, it mentioned exploring various funding mechanisms may cut back over-reliance on petroleum-based levies in the long run.

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