GHS1 Fuel Levy Hike is ‘Difficult but Necessary and Justifiable' – Mahama
Accra, Ghana - 04 June, 2025 - President John Dramani Mahama has justified the recent increase in the fuel levy, describing the move as a necessary step to stabilize Ghana's energy sector.
The levy, which is expected to generate an estimated GHS5.7 billion annually, has been met with concerns from the public, but President Mahama emphasized that the decision was crucial to securing Ghana's energy future.
“This decision, though difficult, is necessary and justifiable,” he stated when the National Economic Dialogue Planning Committee presented its final report to him in Accra on Wednesday June 4.
According to the President, the additional revenue generated from the levy will be ring-fenced and used exclusively to tackle critical issues in the energy sector. Specifically, the funds will be used to pay down legacy debts, finance ongoing fuel purchases, and prevent recurring power shortages.
President Mahama assured Ghanaians that the revenue will be strictly utilized for these purposes, ensuring transparency and accountability in the use of the funds.
“This revenue will be strictly ring-fenced to pay down legacy debts, finance ongoing fuel purchases, and avert the risk of recurring power shortages,” he explained.
The fuel levy hike is part of a broader effort to address the financial challenges facing Ghana's energy sector. The sector is currently saddled with a debt burden of over $3 billion, which has resulted in instability in power supply and hampered economic growth. Government officials argue that without such interventions, the country risks further exacerbating the situation, which would have far-reaching consequences for the economy and public confidence.
The President's defense of the fuel levy hike comes on the heels of the passage of the Energy Sector Levy (Amendment) Bill, 2025, which outlines measures to address the financial challenges facing the energy sector. The bill's passage is seen as a significant step towards stabilizing the sector and ensuring a reliable power supply, which is essential for Ghana's economic growth and development.
In defending the fuel levy hike, President Mahama emphasized that the decision was not taken lightly, but was necessary to ensure the long-term stability of Ghana's energy sector. He urged Ghanaians to understand the rationale behind the move and to support the government's efforts to address the sector's financial challenges.
With the estimated GHS5.7 billion annual revenue expected to be generated from the levy, the government is confident that it can make a significant impact in addressing the sector's financial woes and ensuring a reliable power supply for the country's economic growth and development.
Source: Lead News Online
