President John Dramani Mahama
President John Dramani Mahama has defended the introduction of a new petroleum levy, describing it as a necessary intervention to rescue Ghana’s ailing energy sector from collapse and safeguard national productivity.
He made this known when the National Economic Dialogue Planning Committee presented its final report to him on Wednesday June 4, 2025.
He revealed that the energy sector currently shoulders a debt of over US $3.1 billion, with an additional US$1.8 billion needed in the coming months to procure fuel for uninterrupted thermal power generation.
“Our energy sector carries a debt burden of over US$3.1 billion, with an estimated US$1.8 billion more required to finance fuel procurements for uninterrupted thermal power generation in the coming months. If left unaddressed, this situation significantly threatens national productivity and industrial growth.
“While we have devised a strategy to liquidate this debt and stop the bleeding in the power sector, we must take advantage of recent gains created by appreciation in the value of our currency to accelerate the solution to our energy sector challenges. In line with the dialogue’s recommendation to boldly tackle the crisis in the energy sector, Parliament yesterday approved an amendment to the Energy Sector Levies Act and the certificate of agency introducing a one Ghana cedi increase in the energy sector recovery levy. This decision, though difficult, is necessary and justifiable”, he added.
He was emphatic that the funds from the levy would not be subjected to the risks associated with the Consolidated Fund.
“The fund will be regularly audited, and audit reports made public to ensure its transparent use,” he added. “I know when money falls into the Consolidated Fund, it faces certain hazards. It will not be subject to the hazards of the Consolidated Fund,” he added.
Parliament has approved the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 levy on petroleum products.
It aims to raise additional revenue to address the nation’s severe energy sector debt and ensure a stable power supply.
Watch the video below:
“This decision, though difficult, is necessary. We must take advantage of recent gains created by appreciation in the value of our currency to accelerate the solution to our energy sector challenges.” – President Mahama justifies additional GHC 1 levy per litre of fuel.… pic.twitter.com/pwtRpUnUKA
— JoyNews (@JoyNewsOnTV) June 4, 2025
JKB/KA
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