¢1 Fuel Levy Decision Difficult But Necessary- Mahama

President John Dramani Mahama has attempted to reason with Ghanaians after introducing a GH¢1 increase in the Energy Sector Recovery Levy which the opposition party calls the “Dumsor Levy”.

In an address at the Jubilee House on June 4, 2025, he said the decision was difficult, however necessary and justifiable.

He acknowledged, “We are fully aware of the burden this will place on households and businesses, but I want to assure Ghanaians that this decision was not taken lightly… With the recent gains in macro stability and the strengthening of the Ghana cedi, this levy is not expected to result in immediate fuel price increases at the pump.”

According to him, the action was necessary to cover an estimated US$1.8 billion required to finance fuel procurement for uninterrupted thermal power generation in the coming months.

“If left unaddressed, this situation significantly threatens national productivity and industrial growth.”

The levy, he said, will rake additional revenue projected at GH¢5.7 billion annually.

“Funds from this levy will not be subject to the hazards of the consolidated fund. It will be regularly audited and the audit reports made public to ensure its transparent use.”

President Mahama envisions that the subsequent supply of gas from the ENI Sankofa and Jubilee and Ten fields as well as additional gas through the WAGP will substantially reduce the use of liquid fuels in Ghana’s energy mix.

“At that stage, the resources generated by the increased levy will be channelled to pay down accumulated legacy debts in the power sector.”

In the meantime, he promised to tackle systemic inefficiencies in energy procurement and distribution.

Source: https://opemsuo.com/author/hajara-fuseini/