President John Dramani Mahama has strongly defended the government’s recent decision to impose a GH¢1 levy on every litre of petroleum products, describing it as a “difficult but necessary” step to address the financial challenges crippling Ghana’s energy sector.
The President made these remarks during the official presentation of the final report from the National Economic Dialogue held in Accra. Addressing participants and the general public, Mr. Mahama acknowledged the growing public concern and criticism over the new petroleum levy. However, he emphasized that the decision was made with careful consideration and in the national interest.
According to President Mahama, the GH¢1 Energy Sector Levy is aimed at raising urgently needed funds to rescue the energy sector from further decline. Ghana’s energy infrastructure has been grappling with mounting debts and operational inefficiencies, threatening the stability of electricity supply and the broader economy. The new levy, he explained, is intended to provide a sustainable financial foundation for ongoing reforms.
“This was not an easy decision,” the President stated. “We understand the concerns of Ghanaians, especially in these times of economic pressure. But we must act decisively to prevent a total collapse of our energy sector. The GH¢1 levy is both justifiable and prudent, and it will deliver long-term benefits to every Ghanaian.”
To further assure citizens, President Mahama clarified that the revenue generated from the Energy Sector Levy will not be directed into the Consolidated Fund, which holds the general public revenue and is often criticized for mismanagement. Instead, he stressed that the proceeds would be ring-fenced and used solely for energy sector improvements and debt servicing.
“The funds will be used judiciously and transparently,” Mr. Mahama said. “Ghanaians will see the results—improved power supply, reduced outages, and a more stable energy sector. This is a commitment we intend to fulfill.”
In addition to justifying the levy, President Mahama pledged to implement robust measures aimed at tackling deep-rooted inefficiencies and long-standing malpractices within the petroleum sector. These reforms, he said, are essential for ensuring the long-term sustainability and credibility of the sector.
The Energy Sector Levy (Amendment) Bill, 2025—which introduced the GH¢1 charge—was passed by Ghana’s Parliament on Tuesday, June 3, 2025, following a Majority vote. The bill has been met with significant public outcry and opposition criticism, with many arguing that it adds to the financial burden of already struggling citizens.
Despite the backlash, the government maintains that the levy is a strategic move designed to prevent recurring energy crises and support the country’s economic recovery efforts. Officials have also hinted at future stakeholder engagements to improve transparency and build public trust in the levy’s implementation.
As Ghana moves forward with this new policy, all eyes will be on how effectively the funds are managed and whether the promised improvements to the energy sector will be realized.
