Mahama Defends GH¢1 Fuel Levy Hike as Crucial for Energy Stability
ACCRA – June 4, 2025 — President John Dramani Mahama has strongly defended the controversial GH¢1 increase in the fuel levy, describing it as a “necessary and justifiable” measure to safeguard Ghana’s energy future.
Addressing the nation during the presentation of the final report of the National Economic Dialogue Planning Committee at the Jubilee House on Wednesday, June 4, President Mahama responded to public discontent over the new levy, urging Ghanaians to consider the broader context and long-term benefits.
“This decision, though difficult, is necessary and justifiable,” the President stated.
The levy forms a core part of the recently passed Energy Sector Levy (Amendment) Bill, 2025, which aims to generate an estimated GH¢5.7 billion annually. The President assured that these funds would be ring-fenced for specific uses 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 emphasized.
Ghana’s energy sector is currently burdened with over $3 billion in debt, a situation government officials say threatens reliable power delivery and economic progress if left unaddressed.
President Mahama underscored that the levy is part of a strategic blueprint to restore stability in the power sector and maintain public confidence in essential infrastructure.
Despite pushback from the Minority in Parliament, who described the levy as an undue burden on citizens and staged a walkout during its approval, the government maintains the intervention is vital to avoid a return to power outages and ensure economic continuity.
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