GH¢1 levy to pay for liquid fuel – Energy Minister

John Abdulai Jinapor, the Minister of Energy and Green Transition, clarified that the new Energy Sector Levy is not for paying legacy debts.

He explained that the levy is intended to cover liquid fuel costs. The cost of liquid fuel is not included in electricity tariffs. This creates financing challenges for the government.

In an interview with JOY FM, Jinapor said, "Governance involves making decisions and optimizing situations." He added that no one enjoys imposing taxes or levies on Ghanaians.

Jinapor emphasized that this levy does not address legacy debt. He stated they have analyzed the energy sector and found that liquid fuels are excluded from tariff structures. Therefore, money collected from electricity payments does not fund liquid fuel procurement.

He noted it takes 18 months to two years to establish gas infrastructure. Jinapor mentioned options available include increasing electricity tariffs or relying on the finance minister for funds.

In a related story, Dr. Mahamudu Bawumia criticized the NDC government for introducing a dumsor levy eight times higher than the e-levy.

Bawumia claimed that while the NDC scrapped the e-levy, they introduced a new dumsor levy instead. He compared costs, stating that sending GHC 1,000 via mobile money incurs a GHC 10 fee under the e-levy.

However, he pointed out that purchasing GHC 1,000 worth of fuel now incurs GHC 83 in new taxes due to the dumsor levy. Bawumia expressed concern about future tax increases under this administration.

He concluded by asserting that Ghanaians will realize many lies told by the NDC as time goes on.