Borrowing isn’t the answer – Prof. Bokpin defends GHC 1 fuel levy

Professor Godfred Bokpin has commented on the controversial GH¢1 fuel levy. He urges Ghanaians to understand the tough economic realities behind it.

Bokpin believes the levy is timely and essential. There is no budget allocation for fuel procurement in the 2025 national budget.

Speaking on Morning Starr with Naa Dedei Tettey, he warned against relying on borrowing. He emphasized the long-term costs of such decisions.

“Reforms are more effective when bundled together,” he said. “This year, we don’t have a budget for fuel.”

He cautioned that borrowing could harm taxpayers and economic stability.

“If we borrow today, who pays later?” he asked. “Ultimately, it’s repaid by taxpayers or through painful cuts.”

The GH¢1 fuel levy was introduced via the Energy Sector Levy (Amendment) Bill, 2025. Parliament passed this bill on June 3. It imposes a GH¢1 charge on every litre of petroleum product.

This move has faced sharp criticism from the public and transport operators. Opposition legislators have also voiced their concerns.

Despite the backlash, the government insists the levy is crucial. It aims to address the country’s energy sector debt of about $3.1 billion.

Finance Minister Dr. Cassiel Ato Forson assured that this new levy won’t raise fuel prices. This assurance follows the recent appreciation of the Ghanaian cedi.