President John Dramani Mahama has justified the GHS1 increase in the fuel levy, describing it as a crucial step to stabilise Ghana’s energy sector. Acknowledging public concerns, he stressed that the move was essential for securing the country’s energy future.
According to the President, the levy is projected to generate an estimated GHS5.7 billion annually. He assured Ghanaians that the additional revenue would be “strictly ringfence” to address critical issues in the energy sector.
“This revenue will be strictly ringfenced to pay down legacy debts, finance ongoing fuel purchases, and avert the risk of recurring power shortages,” President Mahama explained.
The levy, introduced as part of the recently passed Energy Sector Levy (Amendment) Bill, 2025, aims to tackle long-standing financial challenges in the power sector, which currently faces a debt burden exceeding $3 billion. Government officials warn that without such measures, Ghana risks further instability in power supply, potentially hampering economic growth and public confidence.
Source: Eben De-Gaulle
