Energy Minister John Abdulai Jinapor has provided clarity on the recently introduced GH¢1.00 fuel levy, explaining its intended purpose and limitations in addressing Ghana’s energy sector challenges.
Speaking on the Citi Breakfast Show, Jinapor said the levy is primarily aimed at helping the government procure liquid fuel, which is critical to sustaining power generation.
He explained that although the levy is expected to generate between GH¢5 billion and GH¢6 billion—about 60% of the sector’s liquid fuel requirements—it will not fully cover the total cost.
“This amount, if you look at the object clearly, we talked about the debt that we have and how unsustainable the debt is,” Jinapor said.
“But when you look at the real object, it is to help us first to procure liquid fuel, and within the veil of the liquid fuel, it will be about GH¢1.2 billion. The government said that this GH¢1 would give us about GH¢5–6 billion, which is about 60% of what we require.”
He added that even with the levy’s contribution, additional funds will still be needed. “So, even with this GH¢1, the Finance Minister will still have to assist us in getting some additional money to buy liquid fuel,” Jinapor said.
Beyond the fuel procurement challenge, Jinapor acknowledged the burden of outstanding debts to Independent Power Producers (IPPs). Efforts are underway to renegotiate these debts and establish a payment plan to halt financial losses and improve efficiency in the energy sector.
“As for the debt, we are renegotiating with the IPPs, and having a payment plan with them so that we stop the bleeding, reduce the inefficiency, and turn the sector around,” Jinapor stated. “Our immediate challenge now is how to get liquid fuel to sustain the power.”
The introduction of the GH¢1.00 fuel levy is part of broader government measures to stabilize Ghana’s power supply, though the Energy Minister cautioned that it alone will not resolve the sector’s financial and operational difficulties.
