Energy Minister John Jinapor Explains Why Govt is Charging GH¢1 on Every Litre of Fuel

• The government has introduced a GH¢1 levy on petroleum products to address the country’s ongoing energy crisis
• The new levy, which was approved by Parliament on June 3, 2025, aims to cover the high cost of procuring liquid fuels
• Despite strong opposition, the Energy Minister has explained why the hard decision to introduce the levy was adopted

The Government of Ghana, led by President John Dramani Mahama, has introduced a new levy on petroleum products to solve the age-old energy crisis in the country.

The government is seeking to charge GH¢1 per litre of fuel purchased at the pumps.

This has, however, sparked outrage from Ghanaians, with many taking to social media to express their concerns.

Reacting to the public outcry, the Minister of Energy and Green Transition, John Jinapor, said the new levy was not introduced to pay for the energy sector's legacy debts.

Speaking to Accra-based Joy FM, the Member of Parliament for Yapei-Kusawgu stated that the government had assessed the energy sector and found that the liquid fuel consumed in the country was not part of the tariff structure.

He said the government requires over US$1B this year alone to procure liquid fuels, adding that even if all citizens are able to pay for the power they consume, and the Electricity Company of Ghana (ECG) were to collect 100 per cent of the money, none of it would go into the procurement of liquid fuel.

"Governance is about making decisions, optimising the situation, and doing what we believe is the best course of action. Nobody enjoys imposing taxes or levies on the people of Ghana. We have been working very hard since assuming office. But quickly, this is not actually to pay for legacy debts," he said.

"What we are doing is that we have studied the situation, conducted the analysis in the energy sector, and the basic truth is that the liquid fuel we buy is not currently part of the tariff structure. So, when you and I pay for electricity, even if ECG were to collect the money 100 per cent today, none of that money would go into the procurement of liquid fuel. Meanwhile, we require over $1 billion this year alone to procure liquid fuel," he stated.

He said the government was supposed to increase its gas production many years ago but failed to do so due to certain constraints.

This, Jinapor stated, led the government to take the tough decision to introduce a new levy on fuel consumption. Watch the video below:

Parliament approves GH¢1 fuel levy

On Tuesday, June 3, the Energy Sector Levy (Amendment) Bill, 2025, which introduces a GH¢1 levy on petroleum products, was approved.

The bill was presented in Parliament by Finance Minister Dr Cassiel Ato Forson under a certificate of urgency.

While speaking on the floor of the house, Dr Forson stated that the total indebtedness of the energy sector stood at US$3.1 billion as of March 2025.

He explained that a minimum of US$3.7 billion was needed to completely clear this debt, with an additional US$1.2 billion required to procure essential fuel for thermal power generation throughout 2025.

Should the bill be assented to by President Mahama, fuel consumers would be required to pay GH¢1 per litre purchased.

This means that if a consumer, for instance, purchased 40 litres of fuel, he or she would pay GH¢40 as taxes to the government.

Dr Forson has, however, assured Parliament and the citizens that the impact of the new levy on ex-pump prices would be absorbed by the gains made from the strong performance of the cedi.

However, the Minority Caucus, led by its leader, Alexander Afenyo-Markin, strongly opposed the bill, arguing that it imposes an inappropriate burden on Ghanaians.

They consequently staged a walkout, abstaining from the passage of the bill.

Energy Minister downplays power crisis fears

Earlier, YEN.com.gh reported that John Jinapor stated there was no power crisis on the horizon, amid fuel stock concerns.

In an interview with Citi FM, the Energy Minister said government was taking proactive steps to maintain electricity stability.

Jinapor made these comments after reports emerged that Ghana had 2.6 days’ worth of fuel stock left to generate more power.

Proofreading by Bruce Douglas, copy editor at YEN.com.gh.

Source: YEN.com.gh