Jinapor Justifies Fuel Levy, Says Govt Still Needs More To Power Plants

Minister for Energy, John Jinapor, announced a new fuel levy. The GH¢1.00 per litre levy aims to raise between GH¢5 billion and GH¢6 billion. However, he admitted this amount is not enough for Ghana’s energy needs.

In an interview with Citi FM, Jinapor defended the levy. He called it a critical but partial solution to energy challenges. He explained that the country has significant debt issues.

Jinapor stated that the levy would cover only about 60% of liquid fuel costs. The government needs around GH¢1.2 billion for immediate fuel purchases. Additional support from the Finance Ministry will still be necessary.

Ghana's energy sector faces rising demand and foreign exchange volatility. The total debt to Independent Power Producers (IPPs) reached US$3.1 billion by March 2025.

Jinapor mentioned ongoing negotiations with IPPs to restructure debts. They aim to establish sustainable payment terms for long-term stability. “Our immediate challenge is securing liquid fuel for power,” he said.

The GH¢1 fuel levy was passed by Parliament on June 4 after a minority walkout. This decision has sparked political debate in the country. Supporters argue it is essential for energy stability, while critics say it burdens consumers further.