Accra: Mr. John Abu Jinapor, the Minister of Energy and Green Transition, has rejected calls to scrap the one Ghana cedi levy on every litre of petroleum products, cautioning that such a move could hurt the economy.
According to Ghana News Agency, the Minister emphasized that while he did not want to overburden citizens with taxes, decisions must be made judiciously to prevent economic collapse, which could be challenging to recover from. He noted that while the government was open to reaching a consensus on the issue, any removal of the levy should be accompanied by an alternative funding mechanism to support energy-related expenses.
Responding to inquiries before Parliament's Governance Assurance Committee, Mr. Jinapor stated: "Let us not take populist decisions that will further hurt the economy." He referenced the free electricity supply provided to households during the COVID-19 pandemic in 2020, highlighting that although it was beneficial at the time, the cost ultimately had to be covered by Ghanaians. The levy, introduced in 2025 under the Energy Sector Levies (Amendment) Act, was designed to generate revenue to clear energy sector debts and ensure a stable electricity supply.
The levy was justified as a measure against recurring power crises, but critics argue it has become an undue burden on consumers amid rising global fuel prices, exacerbated by the ongoing conflict between Iran and Israel/USA in the Middle East. Mr. Jinapor revealed that the Ministry of Energy was collaborating with the Ministry of Finance and other stakeholders to evaluate the feasibility of removing the levy, while stressing that fiscal sustainability must remain a priority.