Energy expert, Dr. Eric Effah-Donyina has called on the government to set a clear timeline for the newly implemented GH¢1 per litre fuel levy.
According to him, while the measure may be necessary, it should not become a permanent financial burden on consumers.
Speaking on Morning Starr with Joshua Kodjo Mensah on Wednesday, July 16, Dr. Effah-Donyina described the levy as a “necessary evil” in light of the crippling legacy debts facing Ghana’s power sector.
He noted that the debt, largely attributed to inefficiencies within the Electricity Company of Ghana (ECG) and broader distribution challenges, has long hampered the sector’s performance and needs urgent attention.
He however questioned the broader purpose of the levy and urged the government to limit its scope strictly to clearing legacy debt.
“This legacy debt has been hanging on the neck of ECG and the entire power sector for a very long time. It is not helping the power sector, it’s not making it efficient, it’s not making it serve us the way we want so we have to help the government to pay this money off but then there must be a timeline when we will be asked to stop paying this,” he said.
Dr. Effah-Donyina’s comments coincided with the official rollout of the revised Energy Sector Levy, which the Ghana Revenue Authority (GRA) began enforcing nationwide today, Wednesday, July 16, 2025.
The levy, introduced under the Energy Sector Levies (Amendment) Act, 2025 (Act 1141), adds GH¢1 per litre to key petroleum products.
The government says the move is aimed at raising critical revenue to address longstanding financial shortfalls and service arrears in the energy sector.
Initially scheduled to take effect on June 9, the rollout was delayed twice due to resistance from transport unions, petroleum retailers, and oil marketing companies.
Following extensive consultations with the Ministry of Finance, Ministry of Energy and Green Transition, and the National Petroleum Authority (NPA), the GRA confirmed that all systems are now in place to ensure full compliance across the petroleum value chain.
According to officials, the revenue generated from the levy will be used to pay down approximately $3.1 billion in energy sector debt and support efforts to improve supply reliability nationwide.
However, concerns remain that the expanded use of the funds—for infrastructure maintenance and fuel purchases for power generation—goes beyond the levy’s original intent.
Dr. Effah-Donyina warned that without a clear sunset clause, public trust in the policy could erode.
The GRA has since urged all fuel stations, depots, and petroleum companies to comply fully with the revised rates and assured that enforcement teams will monitor implementation closely.
Source: Starrfm.com.gh
