Mahama Defends GHS1 Fuel Levy Hike as Tough but Essential and Justified

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.

According to the President, the levy is expected to generate an estimated GHS5.7 billion annually.

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

“This revenue will be strictly ringfenced 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.