GH¢1 Fuel Levy to raise GH¢5–6bn, still not enough – Jinapor

Energy Minister John Jinapor announced a new GH¢1.00 fuel levy. This levy is expected to generate between GH¢5 billion and GH¢6 billion. The funds will support the purchase of liquid fuel. However, Jinapor noted that this amount is still insufficient.

During an interview on the Citi Breakfast Show, he explained the need for the levy. It aims to address Ghana’s growing energy sector debt. He stated, “This amount helps us procure liquid fuel.” The government estimates that GH¢1 will raise about 60% of what is needed.

Jinapor mentioned that even with this revenue, more funding is necessary. The Finance Ministry will need to provide additional money for liquid fuel purchases.

He also discussed efforts to manage the debt situation. The government is renegotiating terms with Independent Power Producers (IPPs). They are developing a payment plan to stabilize the energy sector.

“Our immediate challenge now is securing liquid fuel,” he said.

Meanwhile, Benjamin Nsiah, Executive Director of the Centre for Environment and Sustainable Energy, criticized the new fuel levy. He called it regressive and harmful to consumers already facing financial strain.

In a Citi Business News interview, he questioned reliance on petroleum taxes for funding. Nsiah argued that while the levy may raise GH¢5.7 billion, it does not solve structural issues in the sector.

“This approach is tired and unfair,” he stated. He emphasized that past levies have not provided lasting solutions. “It’s about managing what’s already collected,” he concluded.