The Energy Sector Shortfall and Debt Repayment Levy (ESSDRL), commonly known as the One-Cedi Fuel Levy, generated GH¢8.81 billion in 2025 but covered less than half of the GH¢22.67 billion spent on energy sector shortfalls and legacy debts during the year.
This is according to the 2025 Annual Report on the Management of the Energy Sector Support Account.
The report, submitted to Parliament by the Ministry of Finance, showed that the government had to provide an additional GH¢12.85 billion from the Treasury Main Account to meet the sector’s financing needs after proceeds from the levy proved insufficient to cover total obligations.
According to the report, actual collections from the ESSDRL amounted to GH¢8.66 billion in 2025, exceeding the revised target of GH¢8.62 billion by GH¢39.88 million.
Total lodgements into the Energy Sector Support Account reached GH¢8.81 billion during the year.
Together with a balance brought forward from 2024, the account had GH¢10.07 billion available for utilisation.
However, total expenditure on energy sector shortfalls and legacy debt repayments reached GH¢22.67 billion, more than double the amount mobilised through the levy.
Of the total expenditure, GH¢11.48 billion was used to settle energy sector shortfalls, while GH¢11.19 billion was used to repay legacy debts.
The report noted that the scale of the sector’s financial challenges rendered proceeds from the levy inadequate to settle obligations for the 2025 fiscal year fully.
“As a result, an additional amount of GH¢12.85 billion was paid by the Controller and Accountant-General’s Department from the Treasury Main Account,” the report stated.
The Treasury support comprised GH¢5.16 billion for energy sector shortfall payments and GH¢7.69 billion for legacy debt repayments.
The report attributed the levy’s revenue performance to increased volumes of petroleum products resulting from heightened economic activity and stable fuel prices, as well as measures introduced by the government to curb the diversion of petroleum products.
The ESSDRL was introduced under the Energy Sector Levies Act, 2025 (Act 1135), which consolidated several existing petroleum-related levies into a single charge aimed at addressing energy sector payment shortfalls and reducing accumulated debt.
The government increased the levy by GH¢1 per litre on selected petroleum products in 2025 to generate additional revenue for the sector.
Despite the substantial revenue generated, the report concluded that additional government resources remained necessary to address longstanding energy sector debts and financing gaps.
At the end of 2025, the Energy Sector Support Account recorded a closing balance of GH¢252.23 million.
