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Home»Politics»New GHS1 Fuel Tax Won’t Fix Energy Sector Woes, Says Elvis Darko
Politics

New GHS1 Fuel Tax Won’t Fix Energy Sector Woes, Says Elvis Darko

nkqweziBy nkqweziJune 9, 2025No Comments2 Mins Read
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Editor of Newscenta newspaper, Elvis Darko, has criticised the newly introduced GHS1 fuel levy, warning that it will not resolve Ghana’s energy sector crisis and risks creating false hope among the public.

Describing the measure as a “desperate revenue move,” Darko said it fails to tackle the deep-rooted inefficiencies crippling the sector.

Speaking on Channel One TV’s Breakfast Daily on Monday, June 9, he noted that although the levy is projected to raise GHS5.7 billion, it falls short of addressing structural problems such as ECG inefficiency, ballooning legacy debts, and mounting capacity charges.

“The one-cedi levy, though painful, cannot fix the challenges. If people are made to believe this will end dumsor and it doesn’t, the government will face serious backlash,” he cautioned.

He argued that unless government reinvests in the Electricity Company of Ghana (ECG) and undertakes broader reforms, the levy would only provide short-term relief without sustainable impact.

Darko also stressed the need for honest communication with the public, saying oversimplified promises would damage government credibility.

Parliament passed the Energy Sector Levy (Amendment) Bill, 2025, on June 3, introducing the GHS1-per-litre charge on petroleum products. The government expects to raise an extra GHS5.7 billion from the levy to support debt payments and fuel procurement for power generation.

Finance Minister Dr. Cassiel Ato Forson has disclosed that Ghana currently owes $3.1 billion in energy-related debts, with $3.7 billion needed to clear arrears and a further $1.2 billion required for thermal fuel in 2025.

The levy has drawn criticism from industry stakeholders, including the Chamber of Oil Marketing Companies (COMAC), which warned of its potential impact on fuel prices and consumer costs. In response to the backlash, the Ghana Revenue Authority (GRA) has delayed implementation from June 9 to June 16.

COMAC Dr Cassiel Ato Forson ECG Elvis Darko Ghana News GHS1 fuel levy
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