Energy Minister John Jinapor has explained that the recently introduced GH¢1 fuel levy is expected to generate between GH¢5 billion and GH¢6 billion to support the procurement of liquid fuel.
However, he stressed that this amount will still fall short of what is needed to address Ghana’s mounting energy sector debt.
Speaking on the Citi Breakfast Show, Minister Jinapor justified the levy as a necessary intervention to ensure continuous fuel supply to power plants. “This amount, if you look at the object clearly, we talked about the debt that we have and how unsustainable the debt is,” he said. “But when you look at the real object, it is to help us first to procure liquid fuel, and within the veil of the liquid fuel, it will be about GH¢1.2 billion.”
The Minister noted that even with revenue from the levy, the Finance Ministry would still have to step in to bridge the gap. “So, even with this GH¢1, the Finance Minister will still have to assist us in getting some additional money to buy liquid fuel,” he added.
Addressing the debt issue, Mr. Jinapor said the government is actively renegotiating terms with Independent Power Producers (IPPs) and developing a payment plan to stabilise the sector. “As for the debt, we are renegotiating with the IPPs, and having a payment plan with them so that we stop the bleeding, reduce the inefficiency, and turn the sector around,” he stated.
Meanwhile, the Executive Director of the Centre for Environment and Sustainable Energy, Benjamin Nsiah, has raised concerns over the government’s newly approved GH¢1 fuel levy, describing it as regressive, uncreative, and detrimental to already strained consumers. He argued that the levy merely adds to a history of ineffective fiscal interventions that fail to resolve the sector’s structural inefficiencies. “This approach is not only tired but unfair,” Nsiah said. “We’ve seen this playbook before. It’s not about collecting more. It’s about managing what’s already collected.”
