An amount of GH¢7.281 billion was programmed as total Energy Sector Levies to be collected for the 2022 Fiscal Year.
This was made up of GH¢6.889 billion and GH¢392.03 million for Petroleum Levies and Electricity Levies, representing 94.6% and 5.4% of the targets for the year, respectively.
According to the 2022 Annual Energy Sector Levy Act (ESLA) Report, the 2022 programme target showed an increase of GH¢1.033 billion, representing 16.5% growth over the 2021 target of ¢6.248 billion.
The growth in the projected collections was mainly on account of the expected increase in the consumption of petroleum products.
However, actual Energy Sector Levies collected from January 2022 to December 2022 totaled ¢6.703 billion, the 2022 Annual Energy Sector Levy Act (ESLA) Report has revealed.
The actual collection was below target by ¢578.40 million or 7.9%, mainly on account of low consumption of petroleum products and unrealized power sales.
The 2022 collections, however, recorded an increase of ¢409.43 million (6.5%) above the 2021 collections of ¢6.293 billion due to an increase in the volume of petroleum products lifted compared to the 2021 volumes.
“Low consumption of petroleum products due to high fuel prices at the pumps on account of the surge in prices on the world market (due to the Russia-Ukraine war) as well as the depreciation of the cedi; withdrawal of the PSRL [Petroleum Sector Recovery Levy] in January 2022 to cushion consumers against high Petroleum Prices at the pumps; unrealised power sales due to increase in commercial losses and inability of the EDCs to collect outstanding levies billed to customers”.
At the end of the period, total lodgement into the established and other accounts under the ESLA amounted to GH¢6.429 billion, out of the collections of GH¢6.703 billion.
The lodgement was below collections by GH¢273.71 million, representing 4.1%, on account of retention on the Road Fund and Energy Fund Levies by the Ghana Revenue Authority (GRA), unpaid invoices by Oil Marketing Companies, and the inability of the EDCs to transfer PLL and NESL collections to the Ministry of Energy.
A total of GH¢5.804 billion of total levies lodged into the ESLA accounts was utilised at the end of December 2022.
The amount was utilised mainly to pay for power utility debts, effect transfer to E.S.L.A. PLC to settle coupon payments to bondholders, provide subsidy for Premix Fuel and RFO, provide funding for public lighting infrastructure and power consumed by public lighting, support road maintenance and the activities of the Energy Commission, as well as to support the National Electrification Programme.