President John Dramani Mahama has described the newly introduced GH¢1 fuel levy as a tough but necessary measure to prevent Ghana’s energy sector from sliding into a deeper crisis.
The levy, introduced through the Energy Sector Levy (Amendment) Bill, 2025, imposes a GH¢1 tax on every litre of petroleum products.
Government officials say the measure aims to stabilise the power sector, which is currently burdened with a legacy debt of $3.1 billion.
Finance Minister Dr. Cassiel Ato Forson, who presented the bill in Parliament, assured Ghanaians that the tax would not lead to an increase in pump prices due to the recent appreciation of the cedi. He noted that proceeds from the levy would be used to procure fuel for power generation and improve grid reliability.
Despite these assurances, the policy has drawn sharp criticism from the Minority in Parliament. Minority Leader Alexander Afenyo-Markin accused the government of reneging on its pledge not to introduce new taxes in the 2025 national budget.
Addressing the National Economic Dialogue Planning Committee in Accra on Wednesday, June 4, President Mahama acknowledged the public’s frustration over the levy. However, he maintained that the policy was a critical step toward securing the country’s energy future.
“This decision, though difficult, is necessary and justifiable. This revenue will be strictly ring-fenced to pay down legacy debts, finance ongoing fuel purchases, and avert the risk of recurring power shortages,” the President said.
The government has also promised to ensure the levy is used solely for its intended purpose and to conduct periodic reviews on its implementation and impact.