This Is the No.1 Reason Ghana Needs a New Petroleum Levy — Mahama Explains

/ Facing a $3.1 billion energy debt, the government introduces a petroleum levy to fund fuel procurement and protect Ghana’s power supply and economic growth.

০ Energy Sector Debt Soars: Ghana’s power sector carries over $3.1 billion in debt, with another $1.8 billion needed for thermal fuel supply.

০ New Petroleum Levy Introduced: Parliament passes an amendment to the Energy Sector Levies Act, adding GH¢1 to petroleum products.

০ Transparent Fund Use Promised: President Mahama assures Ghanaians the levy fund will be independently audited and kept out of the Consolidated Fund.

Mahama outlines the top reason for introducing a new petroleum levy to boost infrastructure
and energy funding.

In a decisive move to rescue Ghana’s troubled energy sector, President John Dramani Mahama has defended the introduction of a GH¢1 petroleum levy, calling it a “necessary and justifiable” step to stabilize power supply and safeguard national productivity.

Speaking on June 4, 2025, as the National Economic Dialogue Planning Committee submitted its final report, the president revealed that Ghana’s energy sector is weighed down by more than US$3.1 billion in debt. An additional US$1.8 billion is required in the short term to secure fuel for consistent thermal power generation.

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

President Mahama warned, emphasizing that swift and strategic action is essential to avoid a power crisis that could ripple through the economy.

Parliament has since passed the Energy Sector Levy (Amendment) Bill, 2025, introducing a GH¢1 per litre levy on petroleum products. The new charge is expected to boost revenue specifically earmarked to pay down the sector’s debt and ensure fuel availability for stable energy output.

READ ALSO: Ghana to See 9% Fuel Price Reduction as Cedi Strengthens – ASEC Forecasts

President Mahama acknowledged the difficulty of the decision, especially amid public concern over rising fuel prices. However, he highlighted the cedi’s recent appreciation as a timely opportunity to ease the sector’s financial pressures.

Importantly, the President reassured the nation that proceeds from the levy would be managed outside of the Consolidated Fund—often criticized for lack of financial accountability. 

“The fund will be regularly audited, and audit reports made public to ensure its transparent use,” he said.

The administration hopes that this bold intervention will restore investor confidence, stabilize electricity generation, and fuel industrial growth as Ghana navigates its path to economic recovery.

"This decision, though difficult, is necessary. We must take advantage of recent gains created by appreciation in the value of our currency to accelerate the solution to our energy sector challenges." - President Mahama justifies additional GHC 1 levy per litre of fuel.… pic.twitter.com/pwtRpUnUKA

— JoyNews (@JoyNewsOnTV) June 4, 2025

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