GH¢1 fuel levy a tough but a necessity – Mahama

President John Dramani Mahama has defended the newly introduced GH¢1 fuel levy, describing it as a difficult but essential policy aimed at preventing Ghana’s energy sector from sliding into deeper financial and operational crisis.

The levy, introduced under the Energy Sector Levy (Amendment) Bill, 2025, imposes a GH¢1 tax on every litre of petroleum products. It is intended to help stabilise an energy sector burdened by a legacy debt of approximately \$3.1 billion.

Presenting the bill in Parliament, Finance Minister Dr. Cassiel Ato Forson assured that the new charge would not result in higher fuel prices at the pump, citing recent gains in the value of the Ghanaian cedi.

He explained that proceeds from the levy would be used to fund fuel purchases for power generation and support efforts to improve the reliability of the national grid.

The government has further committed to ensuring transparency in the implementation of the levy and pledged to conduct periodic reviews to assess its impact and effectiveness.

Despite these assurances, the policy has met strong opposition from the Minority in Parliament.

Speaking at the National Economic Dialogue Planning Committee meeting in Accra on Wednesday, June 4, President Mahama acknowledged the concerns raised by the public .

However, he insisted that the levy is a strategic measure to secure Ghana’s energy future looking at the current debt of the sector.

He said, “This decision, though difficult, is necessary and justifiable. This revenue will be strictly ring-fenced to pay down legacy debts, finance ongoing fuel purchases, and avert the risk of recurring power shortages.”