Energy Ministry urgently seeks GH₵1.1bn as fuel reserves near exhaustion

The Ministry of Energy and Green Transition has revealed an urgent need for GH₵1.1 billion to procure liquid fuel for power generation, warning that current reserves will only last 2.6 days. This crisis comes amid a broader financial challenge, as the energy sector battles a monthly deficit of GH₵2 billion, primarily due to the Electricity Company of Ghana’s (ECG) struggle to recover sufficient revenue.

Speaking before the Parliamentary Energy Committee during a stakeholder meeting on Thursday, May 15, Energy Minister John Jinapor sounded the alarm over the looming fuel shortage. “The fuel we have will last us just 2.6 days. Although we have placed orders for more fuel, these must be paid for. Some fuel has been procured on credit, and we are coordinating with the Ministry of Finance for payment. However, the Ministry of Finance also faces its limitations,” he explained.

Jinapor indicated that the government is considering broader interventions to address the crisis. Among the proposals is the possible inclusion of the private sector in ECG’s operations to improve efficiency and boost revenue collection. He said these matters will be tabled at the Cabinet level for further deliberation.

The Minister also highlighted the issue of unpaid electricity bills by state institutions, which continues to burden the sector. He pointed specifically to Ghana Water Limited, revealing that the company has not paid for electricity consumed over the last seven months. “Ghana Water Limited has not made any payment for the past seven months to the ECG but continues to consume the power,” Jinapor disclosed.

These revelations have intensified concerns about the financial health and operational sustainability of Ghana’s power sector. With both public institutions and private consumers defaulting on payments, the sector faces growing pressure to stabilize funding and secure reliable electricity supply for the country.

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