Ghana’s President John Dramani Mahama has justified the sudden introduction and passage of a controversial Energy sector levy otherwise known as fuel levy of ¢1.
Parliament on June 4, 2025, approved the Energy Sector Levy (Amendment) Bill, 2025, introducing a GHS1 increase in the levy on petroleum products.
President Mahama described the move as both necessary and justified to stabilize Ghana’s struggling energy sector.
Speaking on Wednesday during the presentation of the National Economic Dialogue Planning Committee’s final report in Accra, President Mahama acknowledged that the decision might be unpopular.
However, he stressed that it was essential for securing the country’s energy future.
“This decision, though difficult, is necessary and justifiable,” the President said.
The increased levy the government say it’s expected to generate about GHS5.7 billion annually.
President Mahama assured Ghanaians that this additional revenue would be strictly ring-fenced. It will be used solely to address critical issues within the energy sector.
He explained, “This revenue will be strictly ring-fenced to pay down legacy debts, finance ongoing fuel purchases, and avert the risk of recurring power shortages.”
The fuel levy increase is part of the recently passed Energy Sector Levy (Amendment) Bill, 2025. This legislation presented to the house of records by the Finance Minister Dr. Cassiel Ato Forson aims to tackle the long-standing financial challenges in Ghana’s power sector. Currently, the sector faces a debt burden exceeding $3 billion.
