GH¢1 fuel levy necessary to avert 50% rise in electricity tariffs – Nii Lante Vanderpuye

Nii Lantey Vanderpuye is the National Coordinator of the District Road Improvement Programme (DRIP). He has asked Ghanaians to support a new GH¢1 fuel levy. He warned that not implementing this measure could lead to a 50% increase in electricity tariffs.

Vanderpuye spoke on Channel One TV on June 5. He called the levy a strategic move for energy stability in Ghana.

He explained that the fuel levy is a proactive step by the government. It aims to prevent passing the full financial burden onto consumers through higher bills. “This levy is meant to resolve a problem we created ourselves,” he said.

He added, “If we do not act now, we will pay 50% more for electricity.” He emphasized choosing between contributing one cedi now or facing higher costs later.

The GH¢1 charge was introduced under the Energy Sector Levy (Amendment) Bill, 2025. Parliament approved it on June 3. The levy imposes a GH¢1-per-litre charge on petroleum products. The government hopes to raise about GH¢5.7 billion from this initiative.

These funds will help clear rising debts in the energy sector and ensure fuel purchases for thermal power generation. Finance Minister Dr Cassiel Ato Forson revealed that the energy sector has a $3.1 billion debt and needs an additional $3.7 billion for obligations.

Moreover, around $1.2 billion will be needed for fuel procurement in 2025. These figures highlight the urgency of fundraising efforts by the government.

Vanderpuye stressed that the fuel levy is not meant to burden citizens unfairly. Instead, it aims to prevent erratic power supply, known as dumsor in Ghana.

“It is either tariffs or taxes,” he stated. “We believe this tax is better for stable electricity without raising tariffs.” He urged Ghanaians to consider the broader benefits of energy security.