Minister for Energy, John Jinapor, has revealed that the newly introduced GH¢1.00 per litre fuel levy is expected to raise between GH¢5 billion and GH¢6 billion in revenue, but admits the funds will still be insufficient to fully cover Ghana’s energy needs.
Speaking during an interview on Citi FM, the Minister defended the government’s decision to implement the levy, describing it as a critical but partial solution to the country’s deepening energy sector challenges.
“If you look at the object clearly, we talked about the debt that we have and how unsustainable the debt is,” Jinapor said. “This GH¢1 is projected to generate about GH¢5–6 billion, which covers only about 60% of what we require to procure liquid fuel.”
He explained that the government needs approximately GH¢1.2 billion specifically for the immediate purchase of liquid fuels to power generation plants. However, due to the size of the sector’s total financial gap, additional support from the Finance Ministry will still be required.
“So even with this GH¢1, the Finance Minister will still have to assist us in getting some additional money to buy liquid fuel,” he added.
Ghana’s energy sector has been under strain due to rising demand, foreign exchange volatility, and growing indebtedness to Independent Power Producers (IPPs). As of March 2025, the sector’s total debt stood at US$3.1 billion.
Jinapor noted that beyond the levy, the government is engaging with IPPs to restructure existing debts and agree on sustainable payment terms to stabilise the sector long-term.
“We are renegotiating with the IPPs and developing a payment plan to stop the bleeding, reduce inefficiency, and turn the sector around. But our immediate challenge is how to get liquid fuel to sustain power,” he said.
The GH¢1 fuel levy, passed by Parliament on June 4 after a minority walkout, has sparked political debate. Supporters say it is necessary for energy stability, while critics argue it adds to the burden on consumers.
