President John Mahama has defended the introduction of a new GH¢1 levy on every litre of petroleum products, acknowledging the public discomfort but emphasizing its necessity for stabilizing the country’s energy sector.
Addressing the final report presentation of the National Economic Dialogue, Mahama described the levy as a “difficult but essential” step.
He emphasized that the decision wasn’t made lightly and was driven by the urgent need to prevent the collapse of the energy sector.
Recognizing the public’s concerns, the President assured that funds raised from the levy would be handled transparently and kept out of the Consolidated Fund to avoid mismanagement. He pledged that Ghanaians would see the positive impact of the levy in due time.
Mahama also highlighted plans to address longstanding inefficiencies and malpractices within the petroleum sector as part of broader reforms.
The GH¢1 levy was officially passed by Parliament on Tuesday, June 3, 2025, through a majority vote under the Energy Sector Levy (Amendment) Bill, 2025. Despite its passage, the move has sparked significant public backlash, as critics question the timing and impact on consumers already burdened by high fuel costs.
However, the government maintains it is a necessary intervention to manage energy sector debts and ensure reliable power supply.
