Former Deputy Minister of Energy, Andrew Egyapa Mercer says Ghana’s energy sector faces deeper structural problems, warning that recent fuel levies emphasize long standing financial gaps in the system.
Speaking on Good Morning Ghana on Metro TV, the former MP for Sekondi said the one cedi fuel levy introduced by government reflects ongoing struggles to meet obligations within the power sector.
“We were told government needed to impose the levy to pay for fuel and energy costs,” he said. “But the deeper issue is the structure of power purchase agreements.”
According to him, even full revenue collection by the Electricity Company of Ghana would not be enough to settle payments across the sector.
“ECG is the only entity that collects money across the value chain, yet it cannot cover all invoices,” he said. “Government has always had to supplement.”
Mr Mercer said successive administrations have had to intervene to bridge the gap, describing the problem as systemic rather than political.
He also questioned calls by some civil society groups for immediate fuel price reductions, including proposals for a cut of about 1.65 cedis per litre.
“They issued a statement, but I would have expected a more formal engagement with the ministers,” he said. “These are key stakeholders, and dialogue is important.”
Mr Mercer stressed that Ghana’s status as an oil producing country does not insulate it from international pricing systems.
“Even if we refine all our crude locally, it will still be priced at international market rates,” he said. “No one will sell it to us at a discount simply because we produce it.”
He pointed to past global crises, including the Russia Ukraine war, as examples of how external shocks can sharply affect domestic prices.
“Container shipping costs tripled, inflation rose, and yet it was turned into a political argument,” he said. “We made it seem as though government was using global events as an excuse.”
He concluded with a warning against oversimplifying complex economic realities.
“We need to present these issues honestly,” he said. “Otherwise, we risk misleading the public.”
