Vanderpuye: Support Fuel Levy or Face 50% Hike in Electricity Tariffs
Government aims to raise GHS5.7 billion to stabilize energy sector and avoid return of power outages
- GHS1 fuel levy approved to raise GHS5.7 billion for energy sector.
- Without it, electricity tariffs could rise by up to 50%
- Levy aims to prevent power outages and stabilize supply
The National Coordinator for the District Road Improvement Programme (DRIP), Nii Lantey Vanderpuye, is calling on Ghanaians to support the recently approved GHS1 fuel levy, warning that the alternative could be a dramatic 50% increase in electricity tariffs.
Speaking on June 5, Vanderpuye explained that the levy is a forward-thinking strategy aimed at raising funds to stabilize the country’s energy supply without directly raising electricity prices.
“This levy is a solution to a crisis we’ve collectively contributed to. If we don’t support it, the reality is a 50% hike in electricity bills. So the choice is simple—contribute just 1 cedi per litre, or face significantly higher tariffs,” he said.
The Energy Sector Levy (Amendment) Bill, passed by Parliament on June 3, imposes a GHS1 per litre charge on petroleum products. The government anticipates generating around GHS5.7 billion from the levy to tackle massive energy sector debts and secure fuel for thermal plants.
Finance Minister Dr. Cassiel Ato Forson disclosed that the energy sector currently holds a $3.1 billion debt, with an additional $3.7 billion needed to clear arrears. Another $1.2 billion is required to procure fuel for the 2025 fiscal year.
Vanderpuye stressed that the levy isn’t meant to burden the public but to prevent the return of power outages—commonly known as dumsor—which would severely impact both homes and businesses.
“At the end of the day, it comes down to a choice between higher tariffs or a small tax. We believe the levy is the more sustainable and less painful option,” he concluded.
