Communications team member of the New Patriotic Party (NPP), Awal Mohammed, is calling on the government to immediately suspend the newly announced electricity tariff increase.
Speaking on JoyNews’ AM Show, Mohammed argued that the 2.45% hike, scheduled to take effect on July 1, 2025, comes at a time when Ghanaians are already grappling with economic pressure and deserve relief, not more burden.
Describing the move as “untimely and insensitive,” he questioned the rationale behind the Public Utilities Regulatory Commission’s (PURC) decision, especially when key economic indicators appear to be improving.
“Inflation is trending downward, and the exchange rate is more stable. So why push another hike now?” he asked. “The government must act just as it did with the Dumsor Levy, by suspending this tariff adjustment immediately.”
While the PURC justifies the hike based on a 20.67% inflation rate, a cedi-to-dollar exchange rate of GHS10.3052, and rising gas costs, Awal Mohammed countered that these numbers no longer reflect current realities.
He noted that inflation has since dropped to around 18% and the cedi is performing better than during the last tariff increment.
He also dismissed claims that the tariff hike is tied to Ghana’s ongoing International Monetary Fund (IMF) programme, citing a precedent where electricity tariffs were actually reduced by 3% under the same IMF conditions just last year. “Using the IMF as a scapegoat doesn’t work here,” he argued.
Beyond the numbers, Mohammed pointed to the broader impact on Ghana’s development agenda, particularly the government’s 24-hour economy promise. “Small businesses, welders, and manufacturers were promised reduced electricity costs to support this policy. Increasing tariffs now completely contradict that promise,” he said. He concluded by urging a full review of the economic conditions before any further adjustments are made.
