GHS1 fuel levy hike ‘difficult but necessary’ – Mahama

President John Dramani Mahama has defended the GHS1 increase in the fuel levy. He called it a necessary step to stabilize Ghana’s energy sector.

During a speech, he acknowledged public concerns about the decision. However, he emphasized that it is crucial for Ghana's energy future. “This decision, though difficult, is necessary and justifiable,” he stated.

The National Economic Dialogue Planning Committee presented its final report to him on June 4 in Accra. The President noted that the levy could generate an estimated GHS5.7 billion annually.

He assured Ghanaians that this revenue would be used wisely. It will be ring-fenced for critical issues in the energy sector. “This revenue will pay down legacy debts and finance ongoing fuel purchases,” he explained.

The levy is part of the Energy Sector Levy (Amendment) Bill, 2025. This bill aims to address financial challenges in the power sector. Currently, this sector faces a debt burden of over $3 billion.

Government officials warn that without these measures, power supply instability may worsen. They believe this scenario could harm economic growth and public confidence.