We'll audit funds regularly and make reports public – Mahama on GH₵1 fuel levy

President John Mahama has defended the new one Ghana cedi charge on fuel. He calls it necessary to rescue Ghana’s struggling energy sector. This step aims to prevent a looming power crisis.

During the National Economic Dialogue 2025 presentation, he spoke on June 4. The President acknowledged that this decision is difficult but essential. It addresses Ghana’s significant energy debt and stabilizes power supply.

“Our energy sector has a debt burden of over US$3.1 billion,” he stated. He added that an estimated US$1.8 billion is needed for fuel procurement soon.

He warned that ignoring this crisis could harm national productivity. It could also hinder industrial growth. The dialogue identified energy sector liabilities as a major threat to fiscal stability.

This situation led Parliament to approve an amendment to the Energy Sector Levies Act on June 3. The amendment introduced a one cedi increase in the recovery levy. President Mahama described this intervention as "difficult but necessary."

The additional revenue is projected at 5.7 billion cedis annually. This money will be used to pay down legacy energy debt and finance fuel purchases.

The President assured that these funds would not go into the consolidated fund. A dedicated mechanism will manage the revenue with regular audits for transparency.

"The fund will be audited regularly, and reports will be public," he said. Initially, most revenue will support stable electricity supply through fuel purchases.

With developments in the upstream sector, more gas is expected from E&I Sankofa and Jubilee Fields. Additional gas from the West African Gas Pipeline should reduce liquid fuels in our energy mix.

Eventually, resources from this levy will help pay down accumulated debts in the power sector, according to President Mahama.