Mahama assures Ghanaians: New energy sector levy won’t trigger immediate fuel price hikes

President John Dramani Mahama has addressed public concerns about the Energy Sector (Amendment) Bill, 2025. He assured Ghanaians that the new levy will not cause immediate fuel price increases.

Speaking at the National Economic Dialogue Planning Committee on June 4, he explained that the stability of the Ghanaian Cedi and recent economic improvements would help cushion the levy’s impact.

“Our energy sector has over US$3.1 billion in debt,” he stated. “We need an additional US$1.8 billion to ensure a steady fuel supply for thermal power generation.”

He warned that failing to act could lead to a collapse, threatening national productivity and industrial progress. The President emphasized that this levy is part of a broader strategy to rescue the struggling energy sector.

He acknowledged Ghanaians' concerns but noted that the decision was made after careful consideration. “With recent gains in macroeconomic stability, this levy should not lead to immediate fuel price increases,” he said.

“We understand citizens' challenges, and this intervention was not taken lightly.” President Mahama also mentioned that the estimated GH¢5.7 billion from the levy will be used for settling energy sector debts and financing fuel procurement.

To ensure accountability, these funds will be ring-fenced and independently audited. They will also be excluded from the Consolidated Fund, with audit reports made public for transparency.

The announcement has received mixed reactions on social media. Some applaud it as a necessary step for revamping the energy sector, while others fear it may increase costs for consumers.

Despite differing opinions, President Mahama remains confident that this measure will restore confidence in Ghana's energy sector and support long-term economic stability.