The Energy Minister of Ghana, John Jinapor, has revealed that the newly implemented GH¢1.00 fuel fee will increase revenue by GH¢5 billion to GH¢6 billion. However, he cautioned that this sum will not be sufficient to cover all of the nation’s energy sector fuel requirements.
In an interview with the Citi Breakfast Show, the Minister clarified that the charge is a component of the endeavor to address Ghana’s mounting debt in the energy sector and guarantee that there is sufficient liquid fuel to run power plants.
“This GH¢1 levy will help us raise about GH¢5–6 billion, which is around 60% of what we need. We still need support from the Finance Ministry to cover the rest,” he said.
The government is renegotiating payment terms with Independent Power Producers (IPPs), Mr. Jinapor added. This is part of a plan to stabilize the energy sector and cut down on inefficiencies, he said.
The government’s strategy is not universally accepted, though. The new charge was challenged by Benjamin Nsiah, Executive Director of the Centre for Environment and Sustainable Energy. He described it as “uncreative, regressive, and unfair” to Ghanaians, who already face exorbitant living expenses.
“This is nothing new. We’ve seen similar taxes like ESLA before, but they haven’t solved the core problems. The issue isn’t how much money we collect, but how we use it,” Benjamin Nsiah said.
