Former Power Minister, Dr. Kwabena Donkor, has rejected comparisons between the newly introduced GH¢1 fuel levy and the controversial electronic levy (e-levy) previously implemented by the New Patriotic Party (NPP) government.
His comments follow the passage of the Energy Sector Levy (Amendment) Bill, 2025, which imposes a GH¢1 tax on every litre of petroleum products.
The government has defended the move as a critical intervention to stabilise Ghana’s struggling energy sector, ensure consistent power supply, and reduce reliance on debt-financed fuel procurement.
READ: “Dumsor Levy Is 8 Times the E-Levy” – Bawumia Criticises NDC
Finance Minister Dr. Cassiel Ato Forson, who presented the bill in Parliament, assured that the tax would not lead to higher fuel prices due to the recent appreciation of the cedi.
He said the revenue from the levy would be dedicated to fuel procurement for power generation, aiming to minimise outages and improve grid reliability.
Ghana’s energy sector is currently saddled with a legacy debt of about $3.1 billion. Without urgent reforms, officials warn that the sector could face collapse, potentially triggering widespread power crises.
Despite these explanations, the new tax has been met with resistance from the Minority in Parliament.
Minority Leader Alexander Afenyo-Markin criticised the government for reneging on its 2025 budget promise not to introduce new taxes.
Some critics have also drawn parallels between the fuel levy and the now-defunct e-levy, arguing both measures burden consumers.
READ: GH¢1 Fuel Levy: Legacy Debt, Under-Recovery Threaten Power Sector — Dr. Donkor
However, Dr. Donkor strongly disagreed with these comparisons.
Speaking on Morning Starr with Naa Dedei Tettey on Wednesday, June 4, he said the fuel levy and e-levy serve entirely different purposes and should not be equated.
Dr. Donkor added that the current decline in fuel prices presents a strategic opportunity to address the country’s energy debt.
He also urged the government, particularly the Ministry of Energy and Green Transition, to focus on improving operational efficiency across major utilities such as NEDCo, ECG, GRIDCo, and VRA.
He said, “And let me also put this on record. There have been instances in the past when levies, margins, etc., especially levies, have been reduced when the exigency of the moment requires it. Today, prices are coming down. And therefore, if we have to take the opportunity of the downward trend in prices to fix the legacy debt, which is an albatross on our necks, let’s have the courage of our conventions to do it.”
“This and the e-levy are worlds apart. So let’s not try to conflate the issues. They are worlds apart. Let’s look at this on its merits. What I would encourage governments, particularly the Ministry of Energy and Green Transition, is to put in place a plan to make NEDCO, ECG, GRIDCo, VRA more efficient, that they recover costs at the minimum. That, for me, is the challenge. The financial side with this will be fixed. But we also need to look at the operational side. And that is where we should focus our attention. How do we drive down costs?”
Source: Ghana/Starrfm.com.gh/Hamdia Mohammed
