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The National Coordinator of the District Road Improvement Programme (DRIP), Nii Lantey Vanderpuye, has called on Ghanaians to support the newly introduced GHS1 fuel levy, arguing that it is a strategic move to avoid a steep rise in electricity tariffs.
During an interview on Channel One TV’s Breakfast Daily on Thursday, June 5, Vanderpuye explained that the levy offers a practical solution to the ongoing financial crisis in Ghana’s energy sector. Without the new tax, he warned, the country could be forced to impose a 50% increase in electricity bills.
“This is a problem we’ve brought upon ourselves, and now we have two choices,” he said. “Either we contribute GHS1 through fuel purchases or we face a 50% hike in electricity tariffs. The levy offers a shared solution to a national issue without placing the full burden on household electricity consumers.”
The levy is part of the Energy Sector Levy (Amendment) Bill, 2025, which Parliament passed on June 3. It imposes a GHS1 per litre charge on petroleum products and is expected to raise about GHS5.7 billion. These funds will be used to settle outstanding debts in the energy sector and to ensure the steady supply of fuel for Ghana’s thermal power plants.
Finance Minister Dr. Cassiel Ato Forson recently disclosed that the energy sector is currently weighed down by a debt of $3.1 billion, with an additional $3.7 billion in arrears yet to be cleared. On top of that, $1.2 billion is needed to secure fuel supplies for the upcoming fiscal year.
Vanderpuye emphasised that the government is not seeking to increase citizens’ hardships but is instead working to prevent the recurrence of power outages—commonly referred to as dumsor—which can severely affect both homes and businesses.
“In the end, it’s a matter of either paying through higher tariffs or supporting a broader tax mechanism. We believe the levy is a fair way to raise the necessary revenue without drastically raising electricity costs,” he said.
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