The government of President John Dramani Mahama is under fire for introducing a fuel levy despite previous assurances that no new taxes would be imposed on Ghanaians.
Economic analyst John Kusi Narh has voiced concerns over what he describes as a breach of public trust. According to him, many Ghanaians supported the National Democratic Congress (NDC) based on its commitment to avoid additional taxation. However, the introduction of the fuel levy contradicts this promise.
It is recalled that during his vetting on January 13, Finance Minister Dr. Cassiel Ato Forson dismissed the need for tax increases, citing Ghana’s significant potential in revenue mobilisation. He stated, “I have studied Ghana’s economy for some time now, and without mincing words, Ghana has potential when it comes to tax revenue mobilisation. We don’t necessarily have to increase taxes before you rake in revenue. We have the handles; what we need to do is to improve compliance.”
Speaking in an interview about the newly approved levy, Mr. Narh expressed his disappointment, saying, “Why do you break the trust of the people like this? You gave your word to the people not to increase new taxes, only for you to turn around within a few months to slap them with this new levy on fuel.”
During the presentation of the final report of the National Economic Dialogue 2025 at Jubilee House on June 4, President Mahama acknowledged public concerns but justified the fuel levy as necessary for safeguarding the country’s energy future.
“This decision, though difficult, is necessary and justifiable,” he stated. “It is part of a broader strategy to liquidate debt and stop the bleeding in the power sector.”
According to him, Ghana’s energy sector carries over US$3.1 billion in debt, with an additional US$1.8 billion required to finance fuel purchases to ensure uninterrupted thermal power generation. “If left unaddressed, this situation significantly threatens national productivity and industrial growth,” he cautioned.
The fuel levy was passed by Parliament on Tuesday as part of the Energy Sector Levy (Amendment) Bill, 2025, under a certificate of urgency. It imposes a GHS1 tax on every litre of fuel sold in the country.
President Mahama noted that the decision followed recommendations from the National Economic Dialogue to take bold steps in addressing Ghana’s ongoing energy challenges.
He assured that the estimated GHS5.7 billion in annual revenue from the levy will be ring-fenced and not deposited into the Consolidated Fund. “Funds from this levy will not be subject to the hazards of the consolidated fund,” he said. “They will be regularly audited, with reports made public to ensure transparent use.”
The President concluded by urging Ghanaians to support the policy as a responsible and forward-looking solution to the nation’s energy crisis.
