Ghana: New Fuel Levy: Presidential Advisor Joyce Bawah Mogtari Sends Message To Ghanaians

Presidential Advisor and Aide to Ghana’s President, Joyce Bawah Mogtari, has waded into the controversy surrounding the GH¢1 levy imposed on every litre of petroleum products by the government, suggesting that the levy is intended to address key issues aimed at restoring Ghana’s economy to a sound footing.

According to her, the levy aims to achieve macroeconomic stability, fix the energy crisis, safeguard jobs, and drive development and progress.

The new levy, passed by Parliament on Wednesday, June 4, 2025, under the Energy Sector Levy (Amendment) Bill, 2025, aims to raise revenue to settle over $3 billion debt in the country’s power sector.

The Ghana Revenue Authority initially set Monday, June 9, 2025, to implement it but later pushed the date to Monday, June 16, 2025, following concerns raised by the Chamber of Oil Marketing Companies (COMAC).

Sharing her opinion on the new fuel levy, Joyce Bawah Mogtari, in an article posted on Facebook, highlighted the importance of the new levy.

“This is not just any tax; it is an investment in national stability, energy security and long-term development,” she pointed out.

For her, the levy is timely, stating, “As Ghanaians, we have weathered many difficult storms. We now have the opportunity to build lasting solutions. By contributing a small, manageable amount per litre today, we will together ensure a more secure, reliable energy future for all as we #reset Ghana.

“And let us not lose sight of the broader picture. With responsible governance, active citizen engagement and strategic policy decisions, Ghana can move decisively beyond recovery to true transformation,” she said.

She gave an assurance that accountability mechanisms would be instituted to ensure that the levy is utilised wisely for its intended purpose.

Below is the full article

A Step Toward Energy Security: Understanding the New Energy Sector Levy

Ghana’s energy sector is at the turning point. After eight years of mismanagement and corruption, it has been burdened with significant debt and inefficiencies. The consequences of prolonged economic decline and ballooning public debt have been deeply felt.

But change is now underway. Following years of economic decline and ballooning public debt, the arrival of a new leader and a change in government are beginning to yield the fruits of disciplined fiscal management.

Inflation is on a steady decline. The cedi is strengthening and making consistent gains. Investor confidence is returning. And for the first time in years, there is a renewed sense of optimism across the country.

At such a time, difficult but necessary policy decisions become both feasible and impactful. One such decision is the introduction of a GHC1 per litre levy on petroleum products, under the Energy Sector Levy Amendment Bill.

We understand that Ghanaians have carried a heavy burden in recent years, and no new levy is ever easy to accept.

However, despite this levy’s introduction, fuel prices remain lower than they were in previous months. In practical terms, consumers will continue to benefit from reduced costs. More importantly, this levy is different. It is targeted, transparent and purposeful.

Why Now?

1.  Macroeconomic Stability Creates Policy Space: Ghana’s improving fiscal outlook provides the government with room to introduce targeted levies with clear benefits without further destabilizing inflation or worsening the cost of living. This policy is therefore designed not to punish, but to protect.
2.  Fixing the Energy Crisis for Good: For far too long, Ghana’s energy sector has been riddled with debt, inefficiencies and inadequate infrastructure financing. This levy is ring-fenced, meaning every cedi collected will go directly toward settling sector debts, stabilizing electricity generation and ensuring reliable power supply for households, businesses and industries.
3.  Protecting Jobs, Power and Progress: Load shedding, fuel shortages and energy debt have real human costs in lost jobs, rising production costs and missed opportunities. In this respect, this levy is a preventative measure to avoid future disruptions and safeguard Ghana’s economic future.

A Transparent and Accountable Approach

To build and maintain public trust, the government is committed to ensuring full transparency in the management of this levy. The following accountability mechanisms will be instituted:

•  Publishing regular reports on how the revenue is used.
• Auditing the levy’s implementation through independent mechanisms.
• Engaging civil society to monitor its impact and provide feedback.

These measures aim to reassure Ghanaians that every contribution will be used wisely and for the intended purpose.

Shared Responsibility for a Brighter Future

This is not just any tax; it is an investment in national stability, energy security and long-term development.

As Ghanaians, we have weathered many difficult storms. We now have the opportunity to build lasting solutions. By contributing a small, manageable amount per litre today, we will together ensure a more secure, reliable energy future for all as we #reset Ghana.

And let us not lose sight of the broader picture. With responsible governance, active citizen engagement and strategic policy decisions, Ghana can move decisively beyond recovery to true transformation.

Joyce Bawah Mogtari
Special Aide&Presidential Advisor
Office of the President

Source: https://energynewsafrica.com