Energy Minister John Jinapor has revealed that the newly introduced GH¢1.00 fuel levy is projected to generate between GH¢5 billion and GH¢6 billion to aid in purchasing liquid fuel.
However, he emphasized that this amount will only cover about 60% of the sector’s actual financial needs.
In an interview, Jinapor defended the levy as a critical measure to tackle Ghana’s growing energy sector debt and maintain steady fuel supply for power plants. He explained, “The main goal is to procure liquid fuel, which requires roughly GH¢1.2 billion. The levy is expected to raise GH¢5–6 billion, covering just over half of what’s needed.”
Despite the expected revenue, the Minister confirmed that additional government funding will be necessary. “Even with the levy, the Finance Ministry will need to provide extra funds to purchase liquid fuel,” he said.
On addressing the mounting debt, Jinapor noted ongoing efforts to renegotiate payment terms with Independent Power Producers (IPPs) and develop a plan to stabilize the sector.
“We are working to stop the financial losses, improve efficiency, and turn the sector around. The immediate priority remains securing liquid fuel to sustain power generation,” he concluded.
