Seth Terkper justifies GH₵1 fuel levy

Presidential Advisor on the Economy, Seth Terkper, supports the finance and energy ministers. He believes their explanations of the new GH₵1 fuel levy are correct. He noted that their issues are closely connected.

Speaking on Joy FM’s Super Morning Show, Mr. Terkper discussed Ghana's energy debts and supply challenges. Both problems need funding to be resolved.

“Both are correct in a sense,” he stated. Legacy debt is significant due to mismanagement of ESLA. Current challenges also exist, especially regarding fuel supply.

Mr. Terkper explained that without resources for current issues, settling energy sector debt becomes harder. The concerns of both ministers are interrelated.

He clarified that while they focus on different aspects, their issues connect. “I see clearly the two aspects from the two ministers,” he said.

He described the levy as having a structural component and highlighted gaps in pricing frameworks.

“The levy is structural because it determines selling prices,” he explained. A key element missing is electricity tariffs, which the energy minister mentioned.

Mr. Terkper stressed planning is vital during stable economic times.

“I’ve always said that preparation for a crisis should happen before it strikes,” he noted. Building reserves when conditions favor you is essential.

He added that Ghana faces austerity and structural reform now, making timing crucial for the levy introduction. “This is the appropriate time for it,” he said.

Mr. Terkper emphasized stabilizing energy and fuel supply to protect economic growth.

“The needed interventions to stabilize power and fuel supply were not implemented,” he warned, noting this could harm growth further.