President John Dramani Mahama has justified the decision taken by the government to impose a GHC 1 levy on every litre of fuel purchased to address the high debts accumulated in the energy sector by the previous government.
Speaking at the Jubilee House on Tuesday, June 3, 2025, during the presentation of the final report of the National Economic Dialogue 2025, President Mahama alluded to the fact that the introduction of the new levy is going to have a toll on the average consumer but added that the levy is both justifiable and prudent.
Addressing the colleague Members on the floor of Parliament, Dr. Cassiel Ato Forson highlighted the Herculean task the government faces to address the energy sector debt with its compounding interest.
In defending the new levy, President Mahama said, “This was not a decision we took lightly.”
“Though difficult, it is necessary and justifiable.”
President Mahama noted that the proceeds from the new petroleum levy will not be diverted into the Consolidated Fund, where public revenue is traditionally lodged.
Expounding his reason for the diversion, President Mahama maintained that the funds will be insulated from what he described as the "hazards" of the consolidated fund, ensuring that they are used solely for their intended purposes, including strategic energy infrastructure and cushioning the economy against external shocks.
“This revenue will be strictly ring-fenced to pay down legacy debts, finance ongoing fuel purchases, and avert the risk of recurring power shortages,” President Mahama stressed.
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