Mahama justifies GHC1 fuel levy as essential to Ghana’s energy stability

President John Dramani Mahama has defended the recent GHS1 increase in the fuel levy. He called it a critical step for the nation’s energy future.

During a presentation in Accra, he addressed public concerns about the increase. He acknowledged that it may strain households but emphasized its long-term benefits.

“This decision, though difficult, is necessary and justifiable,” he stated. The goal is to stabilize our energy sector, vital for our economy.

The new levy comes from the Energy Sector Levy (Amendment) Bill, 2025. It is expected to generate about GHS5.7 billion annually.

President Mahama assured that these funds will be used only for energy sector issues. “This revenue will pay down legacy debts and fund fuel purchases,” he explained. It aims to prevent future power outages.

He stressed that this action ensures we avoid persistent blackouts again. Ghana's power sector currently faces a debt exceeding $3 billion.

Government officials warn that without reforms like this levy, energy instability could return. This would threaten economic growth and investor confidence.

President Mahama highlighted that success depends on transparency and effective implementation. He urged citizens to support this initiative for the greater good of the nation.

By: Shadrack Odame Agyare | Metrotvonline.com | Ghana