Renowned economist, Professor Godfred Alufar Bokpin, has weighed in on the government’s controversial GH¢1 fuel levy, describing it as a difficult but necessary step to protect Ghana’s fragile economic recovery.
Speaking on Morning Starr with Naa Dedei Tettey, Prof. Bokpin admitted that while public outrage over the levy is understandable, Ghanaians must prepare for more tough policy choices if the country is to achieve lasting economic stability.
“Let’s bear in mind there are difficult, painful decisions ahead that we have to take if Ghana wants to have a bright future,” he said.
“And if we are not careful and we don’t navigate this transition very well, how do you move from this shock therapy to progressive spending without causing disruption in the economy?”
His comments come in the wake of Parliament’s approval of the GH¢1 Energy Sector Levy on every litre of fuel, introduced under the Energy Sector Levy (Amendment) Bill, 2025.
The levy is designed to help the government clear mounting debts in the energy sector, particularly owed to power producers and fuel suppliers, and to improve electricity supply across the country.
According to Prof. Bokpin, the seeming macroeconomic stability witnessed in recent months, including the appreciation of the cedi, is not rooted in real structural change.
“The stability we have seen is not anchored on structural economic transformation. It would be too much of action to say in the last five months or so we should be talking about economic transformation, which will cause a strengthening of the currency,” he cautioned.
While acknowledging that such fiscal measures may be burdensome in the short term, he stressed the need for strategic management of the transition. Without this, he warned, Ghana risks reversing the economic gains made so far.
The GH¢1 levy has drawn mixed reactions from the public and industry players. While some view it as an added burden on consumers already grappling with high fuel prices, others, including the Independent Power Generators, Ghana (IPGG), have endorsed it as a vital measure to rescue the energy sector.
For Bokpin, the challenge now is not just about raising revenue, but ensuring that the funds are prudently managed and channeled toward long-term transformation.
