Politics

‘Necessary Evil’: Mahama on GHS1 Fuel Levy Increase

President John Dramani Mahama has defended the GHS1 increase in the fuel levy, describing it as a necessary and justifiable step to stabilise Ghana’s energy sector.

Speaking on the rationale behind the move, President Mahama acknowledged the public’s concerns but emphasised that the decision was crucial to securing Ghana’s energy future.

“This decision, though difficult, is necessary and justifiable,” he stated when the National Economic Dialogue Planning Committee presented its final report to him in Accra on Wednesday June 4.

The President reiterated that the levy was expected to generate an estimated GHS5.7 billion annually.

He assured Ghanaians that the additional revenue would be ring-fenced and used exclusively to tackle critical issues in the energy sector.

“This revenue will be strictly ring-fenced to pay down legacy debts, finance ongoing fuel purchases, and avert the risk of recurring power shortages,” President Mahama explained.

The levy, part of measures outlined in the recently passed Energy Sector Levy (Amendment) Bill, 2025, aims to address long-standing financial challenges in the power sector, which currently faces a debt burden of over $3 billion.

Government officials maintain that without such interventions, the country risks further instability in power supply—a scenario they say would hamper economic growth and public confidence.

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