Private legal practitioner Martin Kpebu has told the government to ensure that the utilisation of the funds that will accrue from the fuel levy is transparent.
He also called on Ghanaians to support the levy to address the increasing debt in the energy sector
“This is a levy we must fully support because of the debt crisis in the energy sector. Government must however ensure the proceeds are used for its intended purpose,” he said on the KeyPoints on TV3 Saturday, June 7.
Earlier, Chairman of the National Economic Dialogue Committee, Dr Ishmael Yamson, also made the point that transparency in the utilisation of the funds that will accrue from the Fuel levy will help in getting Ghanaians to buy into the decision to introduce the levy,
Dr Yamson stated that there will be high agitation from Ghanaians if they don’t see the funds being utilised for the purposes for which they are collected.
Addressing journalists shortly after officially presenting the 2025 National Economic Dialogue Report to the President, Dr Yamson said, “I personally do not have problems with it. As we stand here, the president said we need 5 billion dollars, but this government doesn’t have it, and this is debt accumulated from the past, so you have that debt sitting there, but you will also have to cater for the present.
Meanwhile, President John Dramani Mahama has defended the government’s decision to impose a new GHS1 fuel levy, describing it as a “difficult but necessary” measure to rescue Ghana’s heavily indebted energy sector and prevent further power crises.
Speaking at the Jubilee House on Wednesday, June 4, during the presentation of the final report of the National Economic Dialogue 2025, President Mahama acknowledged public concerns over the levy but stressed that the move is essential for securing the country’s energy future.
“This decision, though difficult, is necessary and justifiable,” the President stated. “It is part of a broader strategy to liquidate debt and stop the bleeding in the power sector.”
According to President Mahama, the energy sector currently carries over US$3.1 billion in debt, with an additional US$1.8 billion required to finance fuel procurements needed for uninterrupted thermal power generation in the coming months.
“If left unaddressed, this situation significantly threatens national productivity and industrial growth,” he warned.
The levy was passed by Parliament on Tuesday as part of the Energy Sector Levy (Amendment) Bill, 2025, under a certificate of urgency.
It imposes a GHS1 tax on every litre of fuel sold in the country.
President Mahama said the measure follows recommendations from the National Dialogue to take bold action to solve the long-standing energy crisis.
He assured that the estimated GHS5.7 billion in annual revenue from the levy will be ring-fenced and not lodged in the Consolidated Fund.
“Funds from this levy will not be subject to the hazards of the consolidated fund,” Mahama said. “They will be regularly audited, with reports made public to ensure transparent use.”
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The ring-fenced funds will be used specifically to:
- Pay down legacy energy sector debts,
- Finance critical fuel purchases, and
- Prevent future power shortages.
President Mahama concluded by urging Ghanaians to support the policy as a responsible and forward-looking solution to one of the country’s most urgent challenges.
