By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Starr FmStarr FmStarr Fm
  • Home
  • Election Hub
  • General
    GeneralShow More
    Cedi performance in first half of year has been impressive – Finance Minister
    July 24, 2025
    We chose to save, not collapse an indigenous bank – Ato Forson
    July 24, 2025
    Government transfers 500 million Nestlé Ghana shares to NIB – Finance Minister
    July 24, 2025
    President Mahama announces cancellation of fuel allowances for political appointees as cost-cutting measure
    Mahama bans gov’t contracts in foreign currencies – Finance Minister
    July 24, 2025
    Czech government, SEDA Africa donate cutting-edge tech to Greater Accra Regional Hospital
    July 24, 2025
  • Business
    BusinessShow More
    Cedi performance in first half of year has been impressive – Finance Minister
    July 24, 2025
    NIB to play key role in Ghana’s industrial and agricultural drive
    July 24, 2025
    We chose to save, not collapse an indigenous bank – Ato Forson
    July 24, 2025
    Government transfers 500 million Nestlé Ghana shares to NIB – Finance Minister
    July 24, 2025
    President Mahama announces cancellation of fuel allowances for political appointees as cost-cutting measure
    Mahama bans gov’t contracts in foreign currencies – Finance Minister
    July 24, 2025
  • Politics
    PoliticsShow More
    President Mahama announces cancellation of fuel allowances for political appointees as cost-cutting measure
    Mahama bans gov’t contracts in foreign currencies – Finance Minister
    July 24, 2025
    Minority petitions Diplomatic Corps, Mahama over Ablekuma North rerun violence
    July 24, 2025
    Gov’t saves GH₵4.9bn in interest payments – Ato Forson
    July 24, 2025
    Efforts underway to revamp Prof. Mills Library after years of neglect – Mahama
    July 24, 2025
    Ablekuma North Violence: Arrests mean nothing without prosecution – Security Consultant
    July 24, 2025
  • Entertainment
    EntertainmentShow More
    The Weeknd & Shakira to headline 2025 Global Citizen Festival with Tyla, Ayra Starr & Mariah The Scientist
    July 22, 2025
    ACP partners MiPrime Entertainment to Champion Investment in Ghana’s Creative Industry
    July 21, 2025
    I want music to be my legacy, not fame – Rocky Dawuni
    July 18, 2025
    The sense to minister with music came early – Rocky Dawuni
    July 18, 2025
    “You can’t be a Black man and worship a white God” – Rocky Dawuni
    July 18, 2025
  • Sports
    SportsShow More
    Kofi Adams hails Black Queens for gallant AFCON semi-final performance
    July 23, 2025
    Black Queens bow out of WAFCON 2024 after 4–2 penalty loss to Morocco
    July 23, 2025
    Sports Minister rallies Black Queens ahead of WAFCON semi-final with Morocco
    July 22, 2025
    Ghana and Serbia forge strategic sports partnership with landmark MoU
    July 22, 2025
    Ghana to host historic Rugby League Tri-Nation Series this November
    July 21, 2025
  • Technology
    TechnologyShow More
    AI integrated skills training needed to escape job losses – NBU YEC
    July 23, 2025
    Samsung Ghana unveils 2025 TV line-up
    July 22, 2025
    Osman Ayariga speaking on youth empowerment and AI at World Youth Skills Day event
    “Youth should not see AI as competition, but as a digital tool” – Osman Ayariga
    July 17, 2025
    Samsung Introduces Future-Ready Mobile Security for Personalized AI Experiences
    July 16, 2025
    Samsung Electronics acquires Xealth, bridging the gap between wellness and medical care
    July 16, 2025
  • International
    InternationalShow More
    Education Minister Haruna Iddrisu signs MoUs with GEICO and CMS Group for new public universities
    Education Minister signs MoUs with GEICO, CMS Group to establish two public universities
    July 15, 2025
    Presidency terminates Zoomlion’s contract over concerns of impropriety and inflated billing
    Mahama pushes AU–CARICOM partnership to strengthen global reparations push
    July 14, 2025
    47th AU Forum: Ablakwa criticizes $1.2m AfCFTA allocation as ‘highly insufficient’
    July 10, 2025
    Minority demands audit over $1.2m passport relaunch cost and delays
    July 9, 2025
    Minority demands compensation for citizens stranded by US embassy closure
    July 9, 2025
  • Factometer
Search
© 2024 EIB Network Ltd. All Rights Reserved.
Reading: GHS1 Fuel Tax Due to Reckless Actions by Past Gov’t – Richmond Rockson
Share
Notification Show More
Font ResizerAa
Starr FmStarr Fm
Font ResizerAa
  • Headlines
  • Election Hub
  • General
  • Politics
  • Sports
  • Business
  • Entertainment
  • Factometer
Search
  • Headlines
  • Election Hub
  • General
  • Politics
  • Sports
  • Business
  • Entertainment
  • Factometer
Have an existing account? Sign In
Follow US
© 2024 EIB Network Ltd. All Rights Reserved.
GeneralHeadlines

GHS1 Fuel Tax Due to Reckless Actions by Past Gov’t – Richmond Rockson

Hamdia Mohammed By Hamdia Mohammed Published June 4, 2025
Share
SHARE

The Ministry of Energy has responded to critics who have accused the government of shortchanging Ghanaians following the recent passage of the Energy Sector Levy (Amendment) Bill, 2025.

The bill, approved by Parliament on Tuesday, introduces a GHS1 tax on all petroleum products as part of government efforts to rescue Ghana’s struggling energy sector, which is currently burdened with debts estimated at $3.1 billion.

While some Ghanaians have expressed concerns over the potential impact of the levy, many agree that the tax would be acceptable if used transparently and for its intended purpose—to stabilise the energy sector and ensure consistent power supply.

Finance Minister Dr. Cassiel Ato Forson, who moved the bill, explained that the effect of the new tax would be neutralised by recent gains made by the Ghanaian cedi.

He noted that consumers are unlikely to experience a rise in fuel prices at the pumps as a result.

However, the bill sparked strong resistance from the Minority in Parliament, with Minority Leader Alexander Afenyo-Markin accusing the government of reneging on its promise in the 2025 budget not to introduce any new taxes.

The Minority staged a walkout during the bill’s passage, calling it ill-timed and insensitive to current economic hardships.

Responding to the backlash, the Head of Communications at the Ministry of Energy, Richmond Rockson Esq., on Morning Starr with Naa Dedei Tettey addressed the issue.

He emphasised that the government had widely consulted stakeholders before proposing the levy, describing it as the only viable intervention to save the energy sector from collapse.

Rockson blamed the previous government for what he called reckless management of the sector, citing key issues.

He highlighted an excessive procurement costs, poor handling of Electricity Company of Ghana (ECG) contracts, and massive technical and commercial losses—currently estimated at 40 percent.

Rockson added that Ghana’s Independent Power Producer (IPP) debts alone stand at nearly \$2 billion, with the sector facing a monthly deficit of over GHS2 billion.

“With governance, you assess the situation as you move on. And I’ve seen that there’s a deliberate attempt by people to equate this to some taxes that have been abolished. If we did not have this challenge, there’s absolutely no way this would have been introduced. If there were alternatives, it would have consulted wisely. The ministry has consulted wisely with stakeholders. Every sector player will tell you that there’s been engagement on how to deal with the power sector challenges.

READ: Eni, Tullow and Partners Resume Drilling in Ghana’s Offshore Oil Fields

“If this challenge – if someone was not reckless with procurement, with ECG, if someone was not – if we’re not ATC – Aggregate, Technical and Commercial loss of about 40 percent, we wouldn’t be where we are today. If the IPP debts were not as it is now, almost $2 billion, if we didn’t have 80 billion cedis, we didn’t have a deficit of about 2 billion cedis each month, there’s no way governments would introduce this net. There wouldn’t be any business for that. But if you have a sector saddled with debt, a recurring expenditure like fuels, and you don’t have any dedicated fund for it, it becomes difficult.”

“So the government of Ghana is calling on the people that shoulder the burden government. Fortunately, gains have been made. So it’s not as if fuel prices were at 17 and you are adding one CV to it. They moved from 17 to 11 and 12. So if these interventions are made, we are asking that the people, that they support the government through these difficult times to ensure that these structural changes are made and are moving forward. There will be light at the tunnel.”

Meanwhile, government has assured Ghanaians that the levy will be reviewed periodically to ensure accountability and effectiveness.

Source: Ghana/Starrfm.com.gh/Hamdia Mohammed

You Might Also Like

Cedi performance in first half of year has been impressive – Finance Minister

NIB to play key role in Ghana’s industrial and agricultural drive

We chose to save, not collapse an indigenous bank – Ato Forson

Government transfers 500 million Nestlé Ghana shares to NIB – Finance Minister

Mahama bans gov’t contracts in foreign currencies – Finance Minister

TAGGED:energy ministryEnergy sector levyNDCNPPRichmond Rockson
Share This Article
Facebook Twitter Email Print
Share
Previous Article Yiwabra Bridge Collapse Threatens BECE Candidates’ Participation
Next Article Minority Marches to Police HQ, Petitions IGP Over Ablekuma North Results Delay

Starr 103.5FM

Starr FmStarr Fm
Follow US
© 2024 EIB Network Ltd. All Rights Reserved.
newsletter icon
Join Us!

Subscribe to our newsletter and never miss our latest in news, podcasts etc..

[mc4wp_form]
Zero spam, Unsubscribe at any time.
adbanner
AdBlock Detected
Our site is an advertising supported site. Please whitelist to support our site.
Okay, I'll Whitelist
Welcome Back!

Sign in to your account

Lost your password?