Former President John Dramani Mahama has defended the government’s decision to increase the fuel levy, describing it as a necessary measure to stabilize Ghana’s energy sector.
Speaking on the rationale behind the move, President Mahama acknowledged the public’s concerns but emphasized that the decision was crucial to securing Ghana’s energy future. “This decision, though difficult, is necessary and justifiable,” he stated.
According to President Mahama, the levy is expected to generate an estimated GH₵5.7 billion annually, which will be ringfenced and used exclusively to tackle critical issues in the energy sector.
“This revenue will be strictly ringfenced to pay down legacy debts, finance ongoing fuel purchases, and avert the risk of recurring power shortages,” President Mahama explained.
The Ghc1 fuel levy increase is part of the Energy Sector Levy (Amendment) Bill, 2025, aimed at addressing the power sector’s significant debt burden of over $3 billion. Government officials maintain that without such interventions, Ghana risks further instability in power supply, which could hamper economic growth and erode public confidence.