By Godwill Arthur-Mensah
Accra, March 24, GNA – Mr. John Abu Jinapor, the Minister of Energy and Green Transition, has rejected calls to scrap the one Ghana cedi levy on every litre of petroleum products, cautioning that such a move could hurt the economy.
He stressed that while he did not wish to overburden citizens with taxes, decisions must be taken carefully to avoid collapsing the economy, which would be difficult to recover.
The Minister explained that while government was open to consensus on the matter, any removal of the levy must be accompanied by an alternative funding mechanism to cater for energy-related costs.
Responding to questions before Parliament’s Governance Assurance Committee on Tuesday, Mr. Jinapor said: “Let us not take populist decisions that will further hurt the economy.”
Mr. Jinapor cited the free electricity supply granted to households during the COVID-19 pandemic in 2020, noting that although it was a relief at the time, the cost eventually had to be borne by Ghanaians.
The levy, introduced in 2025 under the Energy Sector Levies (Amendment) Act, was aimed at raising revenue to clear energy sector debts and ensure stable electricity supply.
It was justified as a safeguard against recurring power crises, but critics argue that it has become an unnecessary burden on consumers amid rising global fuel prices, worsened by the ongoing conflict between Iran and Israel/USA in the Middle East.
He disclosed that the Ministry of Energy was engaging with the Ministry of Finance and other stakeholders to assess the feasibility of scrapping the levy but insisted that fiscal sustainability must remain a priority.
GNA
Edited by Linda Asante Agyei